JP Morgan now expects the RESERVE BANK OF AUSTRALIA to raise rates again this
week, citing recent inflation readings and comments from senior central bank
officials. JP Morgan chief economist Ben Jarman says the RBA has signaled
inflation is not yet under control and still has work to do. Markets put roughly
a 90% probability on another increase in the official overnight cash rate. Weak
economic activity reduces the chance of further hikes after November, but with
inflation still too high the RBA is expected to maintain a tightening bias.
