Australian Banks Predict More Rate Hikes Amid Ongoing Inflation Concerns

Three of Australia's major banks are forecasting another rate hike this year after a recent hot inflation print. The Commonwealth Bank of Australia, the National Australia Bank, and ANZ now expect a rise in interest rates in November. This follows the July inflation data, which showed renewed strength across various underlying prices.

NAB forecasts an imminent rise from the Reserve Bank of Australia at its next policy meeting on September 29-30, arguing that the risk is biased towards an additional hike in November if economic activity stays resilient.

Westpac has yet to change its view of rates being on hold. CBA's head of Australian economics, Belinda Allen, said that 'while one monthly result needs to be interpreted cautiously, the renewed strength across a range of underlying and domestically influenced prices suggests the pace of disinflation has stalled.'