Bank of America says the Reserve Bank of Australia will raise interest rates next week after the war in the Middle East sent oil prices surging, stoking fears that the central bank has already lost control of inflation.
The investment bank is the first of the major forecasters to predict a move higher when RBA board members gathers next week. It’s expecting a quarter of a percentage point mover higher to 4.1 per cent that is “contrary” to consensus and market pricing.
