Inflation shock sparks fresh fears of another interest rate rise

News24 Business Editor Ross Greenwood examines how hotter-than-expected inflation has forced Australia’s major banks to rethink their interest rate forecasts, with some now tipping another RBA hike. "Following the higher-than-expected inflation rate yesterday, Australia's big bank economists have changed their view on interest rates,” Mr Greenwood said. “The underlying rate, the trimmed mean, that the Reserve Bank watches was higher than expected at 3.6 per cent. “Before that inflation number, economists at the Commonwealth, the NAB, ANZ and Westpac all said the next move in rates would be down, next year, but down. “The NAB says the RBA will raise rates at its next meeting, in September. The Commonwealth and ANZ say a rate rise will come in November.”