RBA Rate Hike Looms as CBA and ANZ Predict September Move

RBA Governor Michele Bullock's hawkish speech has all but eliminated the chance of a September rate hold, according to CBA and ANZ. The banks have joined NAB in tipping a rate hike this month.

Belinda Allen, CBA's head of Australian economics, said the risk sits with tightening monetary policy further beyond September given the inflation backdrop. However, she noted it is not an easy decision to push policy into restrictive territory.

The trigger for the shift was Bullock's appearance before the House of Representatives Standing Committee on Economics last week, where he stated 'some of these upside risks to inflation appear to be materialising.'

ANZ has also retained its forecast for a follow-up 25-basis-point rise in November, which would take the cash rate to 4.85%, its highest level since 2008.