According to AAP reports, three out of four major Australian banks are now predicting the Reserve Bank of Australia will hike interest rates again by Melbourne Cup day following unexpectedly strong consumer price figures for July. Underlying inflation rose 0.5% in the month, forcing institutions like the Commonwealth Bank and NAB to shift their forecasts alongside ANZ, which altered its stance on Wednesday.
Major Bank Rate Hike Predictions After July Inflation Surprise
Australia’s big four banks are divided on the exact timing of the anticipated monetary policy tightening, though three have abandoned expectations of an extended hold. According to NAB economists led by Sally Auld, headline inflation slowed on an annual basis from 3.8% to 3.5% in the year to July, but broad-based underlying price pressures remain stubborn. NAB now expects the RBA to lift the cash rate at its September meeting.
Meanwhile, Commonwealth Bank and ANZ have pencilled in a rate rise for November, bringing their predicted cash rate target to 4.6%. Belinda Allen, CBA’s head of Australian economics, noted that the path back to the central bank’s target band leaves little room for upward surprises. Westpac remains the sole major bank holding out against further hikes this year, with senior economist Justin Smirk arguing that the central bank will wait for the complete September quarterly inflation report before making a move.
Prime Minister Confirms 34 Australians Missing in Nepal Floods
Foreign Affairs Minister Penny Wong stated that additional Department of Foreign Affairs and Trade personnel, including crisis response teams, are being deployed to assist local authorities, the UN, and the Red Cross with search and rescue operations.
According to Sagar Pandey, founder and chief executive of Himalayan Glacier Trekking, contact has been lost with a tour group of 47 people, which included 15 Australians aged 11 to 64. The Nepal embassy in Canberra is actively coordinating with local tourism agencies to verify missing persons data and prepare an urgent request for Australian government financial and technical assistance.
Victorian Government Scraps Secret Public Transport Levy
Victorian Premier Ben Carroll announced the immediate scrapping of a 1% rail improvement charge on public transport fares that was introduced without public announcement on January 1, 2025.
Premier Carroll acknowledged a lack of transparency in how the charge was created and implemented, telling reporters outside parliament that he intends to lead the state in a new direction where commuters know what their money is buying. The cabinet process to formally abolish the levy is underway.
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