Commonwealth Bank of Australia economists currently anticipate that the Bank of Australia will raise interest rates in February next year as inflationary pressure rises while production capacity is limited. Belinda Allen, head of the bank's Australian economic department, said in a report to clients on Tuesday: “We believe it is necessary to raise interest rates to restore balance to the economy and help the inflation rate return to target.” But we don't expect a big cycle of interest rate hikes; the Bank of Australia will only make minor adjustments and expect interest rates to remain at 3.85% by the end of 2026.”

Commonwealth Bank of Australia economists currently anticipate that the Bank of Australia will raise interest rates in February next year as inflationary pressure rises while production capacity is limited. Belinda Allen, head of the bank's Australian economic department, said in a report to clients on Tuesday: “We believe it is necessary to raise interest rates to restore balance to the economy and help the inflation rate return to target.” But we don't expect a big cycle of interest rate hikes; the Bank of Australia will only make minor adjustments and expect interest rates to remain at 3.85% by the end of 2026.”