Australian Banks Split on November Rate Hike Outlook
Major Australian banks are divided on whether the Reserve Bank of Australia (RBA) will raise interest rates again in November, following the recent 25-basis-point hike to 4.60 per cent.
Westpac has joined ANZ in forecasting a rate increase next month, citing renewed inflation concerns and a unanimous September decision by the RBA Monetary Policy Board.
Westpac chief economist Luci Ellis said the board's language and the unanimous vote had lowered the hurdle for another move at the November meeting.
'The bar for a follow-up hike in November is low,' Ellis explained. 'Indeed, judging by today's rhetoric, a November hike is now the base case, absent a lasting resolution of the Middle East conflict beforehand, or some other event that significantly lowers the outlook for energy-related costs in Australia.'