Westpac Predicts September Cash Rate Hike Amid Persistent Inflation
A September cash rate hike is now more likely as major bank Westpac adjusts its forecast and RBA governor Michele Bullock warns of persistent inflation.
Westpac has revised its forecast, predicting a 25-basis-point rise to 4.6 per cent just 11 days before the Reserve Bank of Australia's next meeting.
RBA governor Michele Bullock said inflation was still too high, despite a total cash rate increase of 75 basis points this year, citing pressures from rising oil prices and AI-related technologies as contributors to inflation.
Bullock stated that growth in the economy is slowing but previously projected risks are materialising. The major banks have also hiked their fixed rates, with Westpac increasing its lowest rates up to 0.45 percentage points on Friday.