RBA Rate Hike Expectations Rise Amid Hotter-than-Expected Inflation

Hotter-than-expected inflation has raised expectations that the Reserve Bank of Australia (RBA) could deliver another interest rate hike as early as September.

The RBA's inflation target is between 2 and 3 percent, but the latest figures show that underlying inflation remained at 3.6 percent, unchanged from June.

NAB now expects the RBA to increase the cash rate to 4.6 percent in September, while CBA and ANZ are forecasting a rate hike in November.

Westpac remains the outlier among the big four banks, continuing to expect the RBA to leave interest rates unchanged.