What happened
Westpac revised its interest rate forecast, making all four major Australian banks aligned in predicting an RBA cash rate increase before the end of the year. RBA Deputy Governor Andrew Hauser signalled a rate hike was likely, citing persistent inflation as the primary economic challenge despite broader economic strength.
Why it matters here
For Australian investors, higher interest rates increase mortgage repayments and lift the discount rate applied to corporate earnings. A cash rate rise to 15-year highs directly pressures household disposable income and raises borrowing costs for businesses, dampening equity valuations while boosting yield expectations across fixed income instruments.
What to watch
The RBA board's upcoming monetary policy decision on 29 September 2026, alongside fresh monthly August inflation data scheduled for release by the ABS on 30 September.
Source
au.finance.yahoo.com