Three of Australia’s Four Major Banks Forecast Another Rate Hike This Year
CBA, NAB and ANZ now expect another Reserve Bank of Australia hike after July inflation stayed above target at 3.5%, lifting market odds to 87%.
- On Thursday, Commonwealth Bank of Australia and National Australia Bank joined ANZ in forecasting another rate hike this year after July inflation exceeded expectations, reigniting fears of elevated price pressures.
- July consumer price figures showed headline inflation reached 3.5%, exceeding expert forecasts of 3.2 per cent. The trimmed mean rate remained unchanged at 3.6%, both above the Reserve Bank's 2–3 per cent target.
- Money markets predicted an 87 per cent chance of a rate hike before year-end, up from 17 per cent before the data. NAB chief economist Sally Auld said the risk is biased toward an additional hike in November if economic activity stays resilient.
- The Reserve Bank held interest rates steady at 4.35 per cent this month for a second consecutive meeting. Policymakers have signaled in recent weeks the Monetary Policy Board would act if inflation risks were realized, Auld said.
- Housing costs jumped 5 per cent over the past year, accounting for nearly one-third of annual inflation. Analysts say new dwelling purchases must decline to at least 0.25 per cent month-on-month for the Reserve Bank to feel comfortable.
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Three of Australia's four major banks forecast another rate hike this year
The Commonwealth Bank of Australia and the National Australia Bank on Thursday joined ANZ in forecasting another rate hike this year after a hot inflation print reignited fears that price pressures remain elevated in the economy.
Following the release of the latest inflation data by the Bureau of Statistics, two of Australia's four major banks suddenly adjusted their interest rate forecasts.
Three Big Banks Flip to RBA Hikes—AUD/JPY Is Knocking on 115 - ActionForex
Three of Australia's Big Four banks now expect another RBA hike this year, after minutes, CPI, and household spending data all pointed the same direction this week — pushing AUD/JPY toward 115 while BoJ hawkishness offers Yen little new to trade. The post Three Big Banks Flip to RBA Hikes—AUD/JPY Is Knocking on 115 appeared first on ActionForex.
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