Economists see RBA rate hike as early as September after hot CPI
The country’s sluggish productivity for over a decade has lowered the economy’s potential growth rate
Economists from major banks such as Goldman Sachs, Commonwealth Bank, ANZ Bank, and Deutsche Bank predict another interest rate increase by September, following Australia's high inflation. This follows the Reserve Bank of Australia (RBA) minutes from their August meeting, which indicated a low tolerance for higher consumer prices.
Commonwealth Bank of Australia has predicted a quarter-point hike to 4.6% in November, while Deutsche Bank's Phil Odonaghoe has forecasted a hike at the September meeting. The inflation data released on Wednesday showed that inflation pressures remain elevated, leading to speculation of a rate rise. The RBA aims to maintain the midpoint of its 2-3% target band, a level it has not reached in almost five years.
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