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2025-12-17 14:35:28
[Investors Bet on RBA Rate Hike to 3.6% Before June, Investment Bank Forecasts Diverge] 1. Investors generally bet that the Reserve Bank of Australia (RBA) will have to raise the cash rate to 3.6% by June next year to address persistent inflationary pressures. 2. However, significant divergences have emerged in policy forecasts among major investment banks. Analysts at the Commonwealth Bank of Australia (CBA) and the National Australia Bank (NAB) both revised their forecasts this week, now predicting a rate hike in February next year. In contrast, Westpac Bank maintains its view that rates will remain unchanged. 3. Westpac's Head of Economics, Lucie Ellis, stated clearly in a report: "We believe it is too early to talk about a rate hike." She further explained: "While we cannot rule out the possibility that a further deterioration in recent inflation data could unsettle the central bank and trigger a near-term rate hike, we believe this is not the most likely outcome."
