RBA Rate Hike to 4.60% Now Priced in by All Four Major Australian Banks

Australia's four major banks now agree that the Reserve Bank of Australia will raise the cash rate by 25 basis points to 4.60% from 4.35% at its September 28-29 meeting.

This decision follows Governor Michele Bullock's comment on Friday that some of the upside inflation risks flagged in August appear to be materialising.

Market pricing has followed, with about 90% of a September hike priced in, according to CBA, compared with about 30% before the July CPI release.

CBA expects a unanimous decision and hawkish language in the post-meeting statement, citing a build-up of factors including rising Brent oil prices to around $100 from $80 over three weeks, driven by damage to Saudi Arabia's East-West pipeline.