Morgan Stanley expect a final rate hike from the Reserve Bank of Australia in November

Morgan Stanley on a Reserve Bank of Australia rate hike still to come:

• The RBA now appears comfortably in data-dependent mode,
  with little suggestion that it needs to front-load the
  tightening that is incorporated in its forecasts
• However, its
  inflation path suggests little room for surprises
• As such, we now expect a final rate hike at the next
  forecast update in November, lowering our terminal rate forecast
  from 4.60% to 4.35%. The risk to our forecast is a more extended
  period on hold.

Comments come after the RBA left its cash rate on hold again this month:

• RBA leaves cash rate unchanged at 4.10% for a second straight meeting
• ForexLive European FX news wrap: Aussie knocked lower by RBA

Of the big four banks locally here in Australia, only NAB expect another rate hike:

• National Australia Bank expect one more Reserve Bank of Australia rate hike

ANZ, CBA and Westpac all expect the RBA hiking cycle is over.

RBA cash rate vs. inflation

This article was written by Eamonn Sheridan at www.forexlive.com. Source