Australian Inflation Expectations Remain High, Rate Hikes Loom

Australia's consumer inflation expectations remain elevated, according to recent data. The outlook for inflation stands at 4.9% in September 2026, matching August's pace amid persistent price pressures.

The Reserve Bank of Australia (RBA) is keeping a close eye on the situation. RBA Deputy Governor Andrew Hauser said policymakers would consider whether further tightening is warranted at their September meeting, while Assistant Governor Sarah Hunter stressed that the bank has limited tolerance for stronger inflation pressures.

All four major banks in Australia, NAB, ANZ, CBA, and Westpac, are forecasting another rate hike before year-end. NAB expects a move in September, while the other three see an increase in November.