Major Australian banks are coalescing around expectations that the Reserve Bank
of Australia (RBA) will deliver another 50bp of rate hikes by year-end. After
hawkish remarks from senior RBA officials last week, ANZ and Commonwealth Bank
have adopted the view. Commonwealth Bank economist Belinda Allen said recent RBA
communication and market pricing support the case for earlier-than-expected
action. She added that, given the inflation backdrop, the risk is further
tightening after September, though such a decision would be difficult.
