RBA Rate Hike Odds Near 80%

The odds of a Reserve Bank of Australia (RBA) rate hike in September have risen to nearly 80%, according to interest-rate markets, despite the ASX 200 barely reacting to the news.

Shares in the S&P/ASX 200 slipped only 0.16% on Friday, closing at 9,005.9, after the RBA's growth report indicated a possible increase in rates.

Alex Joiner, chief economist at IFM Investors, believes that the economy risks not slowing quickly enough for the RBA to achieve its inflation objectives, and that a rate hike is necessary either in September or November.

Major banks such as National Australia Bank (NAB), Deutsche Bank, and UBS now forecast a September increase, while Commonwealth Bank of Australia still expects a rate hike in November.