Economists forecast another RBA rate rise due to stubborn inflation

Economists at three of Australia’s big four banks have changed their minds and reinstated their forecasts of a rate rise by the Reserve Bank of Australia (RBA) this year as stubborn inflation fuels expectations of higher borrowing costs.

The moves come after the latest figures put headline inflation for the 12 months to July at 3.5 per cent, and the trimmed mean – the RBA’s favoured underlying measure – remained above its 2 to 3 per cent target.

The RBA will hand down its next interest rates decision on 29 September.

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