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CBA, NAB and ANZ Forecast Another RBA Hike After Hot July Inflation
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.
·London, United Kingdom
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RBA rate hike odds surge as Australia’s inflation problem worsens
RBA rate hike likely as inflation pressures persist, risking impact on housing market and household budgets ‘Australia does have an inflation problem and it’s becoming very, very likely that the RBA will have to go and hike rates again.’ David Scutt from StoneX discusses the increasing likelihood of an RBA rate hike due to persistent inflation. The trim mean inflation rate is over one percentage point above the RBA’s target, indicating signific…
Coverage Details
Total News Sources12
Leaning Left0Leaning Right2Center4Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
C 67%
R 33%
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