RBA Officials Set to Echo Hawkish Stance Ahead of Cash Rate Decision

Australia's inflation rate continues to fuel expectations of another interest rate hike by the Reserve Bank of Australia (RBA). The central bank's chief economist, Sarah Hunter, will speak at a Regional Australia Institute summit in Canberra on Monday.

RBA governor Michele Bullock is also set to appear before a parliamentary committee on Friday. Both officials are expected to reiterate their hawkish stance, saying inflation is too high and leaving the door open to further interest rate hikes.

Markets are now pricing in about a four-in-five chance that the RBA will lift the cash rate by 25 basis points on September 29. However, Westpac's economics team believes the RBA may hike rates in November instead.

The strong July inflation data has reinforced expectations among Wall Street investors that the US Federal Reserve will also raise interest rates to fight inflation. The S&P 500 climbed 0.86% to end Friday's session at 7,656.98 points, while Australian share futures were up 18 points or 0.20% to 16,526.