Australian Banks Shift Towards Hawkish Forecasts Amid Persistently High Inflation

Australia's Consumer Price Index (CPI) surged recently, prompting major banks to shift towards hawkish forecasts. Economists from Goldman Sachs and Commonwealth Bank of Australia expect the Reserve Bank of Australia to raise interest rates as early as September.

The CPI data showed persistently high inflation, which led economists to forecast another interest-rate hike. The Reserve Bank of Australia's August meeting minutes indicated a low tolerance for rising consumer prices.

Economists at Commonwealth Bank of Australia and ANZ expect the Reserve Bank of Australia to raise interest rates in November. Goldman Sachs also sees a risk of a rate hike in September.