RBA Rate Hike Imminent: Markets Price in 95% Chance of September Increase

Australia's financial markets are now pricing in a near-certain interest rate hike in September, with a 95% probability of an increase.

The sudden shift in market sentiment follows testimony from Reserve Bank officials, including Governor Michele Bullock and her senior deputies, at a parliamentary hearing on September 18.

The RBA's Monetary Policy Board is set to convene for a two-day meeting on September 28-29, with financial markets anticipating an increase in the official cash rate target to 4.6%.

Deputy Governor Andrew Hauser noted a structural shift in global financial landscape, which continues to influence domestic policy formulation despite isolated local factors.