JPMorgan Expects RBA Rate Hike This Week, Sees Hawkish Bias Persisting

According to Jin10, JPMorgan now expects the Reserve Bank of Australia to raise interest rates again this week, citing recent inflation data and comments from senior central bank officials. The RBA has signaled that inflation is not yet under control and that more work remains, JPMorgan Chief Economist Ben Jarman said. Market pricing currently implies about a 90% probability of a further increase in the official cash rate. Further hikes after November are unlikely given weak economic activity data, but the RBA is expected to maintain a hawkish bias because inflation remains too high.