Bullock Sounds Alarm on Inflation as Westpac Hikes Interest Rates

RBA Governor Michele Bullock issued a grim warning about another spike in inflation, saying that triggers for it are actively materializing across the economy. She questioned whether the 75 basis points of rate hikes delivered so far this year would be sufficient to get prices under control.

Just hours after her statement, Westpac became the 13th bank to hike interest rates this month, pushing up owner-occupier fixed home loan rates by as much as 0.45 percentage points. The highest hike was for Westpac's 5-year fixed rate, which jumped from 6.69% to 7.14%.

The RBA's next cash rate decision is set for Tuesday September 29, and Dr Lucio Ellis, chief economist at Westpac, shifted the timing of the next rate hike to September from November. He also warned of a 'follow-up' hike in the weeks following it, depending on post-meeting data flow.