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      Australian Banks Anticipate Reserve Bank Rate Hike to 4.60%

      All four major banks in Australia now predict that the Reserve Bank of Australia (RBA) will increase the cash rate by 25 basis points to 4.60% during its meeting on September 28 to 29. This consensus follows comments from RBA Governor Michele Bullock, who indicated that certain inflation risks previously identified are beginning to materialize. Market expectations for a rate hike have surged to approximately 90%, up from about 30% prior to the release of July's Consumer Price Index (CPI).

      The Commonwealth Bank of Australia (CBA) expects a unanimous decision from the RBA, citing factors such as rising Brent crude oil prices, which have recently approached $100 per barrel, and stronger-than-anticipated economic indicators. In contrast, Westpac anticipates a split vote among RBA board members, reflecting differing opinions on labor market conditions and productivity. Both banks acknowledge the potential for further rate hikes in the future, particularly if inflation remains elevated.

      NAB and ANZ have also adjusted their forecasts to align with the anticipated September hike, with both banks suggesting that additional increases may follow if economic data continues to show resilience. The upcoming labor force data and CPI reports will be critical in shaping future monetary policy decisions, as will developments related to oil prices and geopolitical tensions in the Middle East.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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