RBA Officials Set to Fuel Interest Rate Hike Expectations Ahead of Crucial Meeting

Australia's inflation concerns are driving expectations of another interest rate hike later this month. Senior Reserve Bank of Australia officials, including RBA governor Michele Bullock and chief economist Sarah Hunter, will speak ahead of the crucial cash rate meeting on September 29.

Their comments will be closely monitored as markets price in a four-in-five chance of a 25 basis point increase in interest rates.

Westpac's economics team has dropped their call for no more rate hikes following recent hawkish speaking appearances from Dr. Hunter and RBA deputy governor Andrew Hauser, who sent bond markets into a spin.

The RBA board tends to prefer moving after less volatile quarterly inflation data, but strong consumer price data has reinforced expectations among investors that the US Federal Reserve will also raise rates to fight inflation.