Westpac Sees RBA Hike Again in November Amid Energy Price Pressures

The Reserve Bank of Australia (RBA) raised its cash rate by 25 basis points to 4.6% in a unanimous decision, and Westpac now expects a follow-up increase in November.

This move is a sharp turnaround from the board's August meeting, when an extended period on hold looked to be the base case.

Westpac chief economist Luci Ellis said the board can now point to some of the upside inflation risks it warned about in August, driven by global energy prices and firmer data.

The RBA's statement emphasized the Middle East conflict, saying global energy prices are now well above what it assumed in its August forecasts.