RBA Expected to Hike Rates Amid Ongoing Inflation Concerns

Australia's hot inflation has prompted economists to predict another interest rate increase as early as next month. According to Goldman Sachs Group Inc and Commonwealth Bank, price pressures remain elevated after Wednesday's inflation report.

The Reserve Bank of Australia (RBA) meeting minutes indicate that the rate-setting board has low tolerance for higher consumer prices. Commonwealth Bank's Belinda Allen said 'Tighter monetary policy is needed in the Australian economy.'

The nation's biggest lender, CBA, predicts a quarter-point hike to 4.6% in November, with the risk of a move at the Sept 28 and 29 meeting.