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ANZ Now Expects RBA Rate Hike in November Following July CPI Data

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ANZ said it now expects the Reserve Bank of Australia to raise the cash rate by 25 basis points in November following the release of July consumer price index data, with the additional hike expected to be sufficient to slow activity enough to mitigate further inflation risks, according to a Wednesday note by the bank.

The bank said much of the discussion in the August Monetary Policy Board meeting minutes was on upside risks to the RBA's updated inflation forecasts, with the July data suggesting those risks are closer to crystallizing, the note added.

Despite the uncomfortable July data, ANZ said it does not believe there is a strong enough case to justify a September hike, it added.

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