Banks Predict September Rate Hike Amid Rising Oil Prices

The Reserve Bank of Australia (RBA) is expected to increase interest rates in September, according to recent predictions from major banks. CommBank and ANZ have both revised their forecasts, citing rising oil prices and hawkish comments from RBA officials as key factors.

CommBank initially predicted a rate hike in November but has now moved its forecast forward to September. The bank cited the escalation of conflict in the Middle East and recent communications from senior RBA officials, including Governor Michele Bullock, as reasons for bringing forward its prediction.

ANZ, on the other hand, is now predicting two rate hikes, one in September and another in November. The bank noted that RBA officials tend to view oil prices as an inflationary shock rather than a growth shock.