Australia's Inflation Rate Triggers Fresh Bets on Interest Rate Hike

Australia's inflation rate has sparked predictions from top economists that the Reserve Bank of Australia will increase interest rates as early as next month.

The turnaround follows Wednesday's inflation report, which showed price pressures remain elevated. The minutes of the RBA's August meeting also revealed the bank has a low tolerance for higher consumer prices.

Commonwealth Bank of Australia (CBA), the nation's biggest lender, believes the Reserve Bank will 'lose patience' and increase interest rates to 4.6% in November, with the risk of a move as soon as September 28 and 29.

'Tighter monetary policy is needed in the Australian economy,' said CBA's Belinda Allen.