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Reserve Bank of Australia rate hike expected next week as banks adjust forecasts
Major Australian financial institutions, including ANZ, Commonwealth Bank of Australia (CBA), Westpac, and NAB, have converged on forecasts predicting a Reserve Bank of Australia (RBA) interest rate hike next week. This shift in expectations follows rising energy prices and persistent inflation risks, particularly driven by Middle East geopolitical tensions and volatile oil prices.
CBA and Westpac have both brought forward their rate-hike predictions to September. Analysts suggest the cash rate could reach 4.85 per cent, marking its highest level since 2008. In response to the tightening outlook, CBA has also increased its fixed home loan rates by up to 48 basis points.
RBA Assistant Governor Sarah Hunter noted that while higher rates are successfully slowing the housing market and broader demand, inflation risks remain skewed to the upside. Meanwhile, money markets have signaled a more aggressive trajectory, with some pricing in up to three rate increases by mid-2027 to combat ongoing inflationary pressures.
Entities
ANZ · Commonwealth Bank of Australia · Jonathan Kearns · Michele Bullock · National Australia Bank · Reserve Bank of Australia · Sarah Hunter · Westpac
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] Money markets predict up to three interest rate hikes by May 2027. www.perthnow.com.au
- [● 2 SOURCES] Commonwealth Bank of Australia moved its interest rate hike forecast from November to next week. www.businesstimes.com.sg · www.perthnow.com.au
- [○ 1 SOURCE] Commonwealth Bank has increased fixed home loan rates by up to 48 basis points. www.savings.com.au
- [● 5 SOURCES] ANZ and CBA forecast a Reserve Bank of Australia interest rate hike next week. www.finnewsnetwork.com.au · www.sharecafe.com.au · www.businesstimes.com.sg · www.epochtimes.com · www.perthnow.com.au
- [○ 1 SOURCE] RBA Assistant Governor Sarah Hunter stated that higher interest rates are slowing the housing sector. www.actionforex.com
- [○ 1 SOURCE] Bloomberg Economics predicts the RBA will raise interest rates next week due to rising energy prices and inflation risks. www.businesstimes.com.sg