RBA Interest Rate Hike Predicted for September

Goldman Sachs has updated its forecast for interest rate hikes in Australia, now predicting that the Reserve Bank of Australia (RBA) will raise rates to 4.60% this month.

The bank's previous prediction had been a hike in November, but senior RBA officials' hawkish comments have strengthened the case for earlier action.

Deputy Governor Andrew Hauser and Assistant Governor Sarah Hunter emphasized the threat of inflation, which Goldman believes is heightened by its higher oil-price forecasts.

A quarter-point increase would bring the cash rate to 4.60% at the RBA's 28-29 September meeting, with a 60% subjective probability assigned to this outcome.