National Australia Bank (NAB) now expects the Reserve Bank of Australia (RBA) to
raise the cash rate in September after July CPI surprised on the upside, driven
mainly by a surge in fuel costs. NAB economists said July inflation is more
severe than the RBA anticipated in early August and noted the RBA’s MPC has
recently signaled it would act if upside inflation risks materialise. NAB
forecasts a 25bp September hike to a 4.6% cash rate.
