Big Four Banks Unite on September RBA Hike to 4.60%

Australia's Big Four banks now all expect a September RBA hike to 4.60%, marking a significant shift in market expectations.

The Big Four banks - NAB, Westpac, CBA, and ANZ - have all changed their forecasts to reflect a 25bp increase in the cash rate from 4.35% to 4.60%, with some expecting another hike in November if inflation pressures persist.

RBA Governor Michele Bullock's testimony before the House Standing Committee on Economics was seen as a key catalyst for the shift, as she highlighted renewed increases in oil prices and their potential impact on the broader economy.

The jobs report on Thursday is expected to show employment rising by 20.9k, but its significance lies not in determining whether the RBA hikes next week, but rather in influencing policymakers' views on second-round inflation.

AUD/NZD has climbed to its highest level since April 2013 and is now trading around 1.245, with markets pricing in a September hike and potentially higher policy rates beyond that.