Traders and economists increasingly expect the Reserve Bank of Australia to raise interest rates next week as the conflict in the Middle East drags on, triggering a spike in the oil price and leaving the central bank more worried about inflation.
National Australia Bank and Westpac are the first of the major lenders to forecast an imminent rate rise, with economists expecting the RBA to lift the official cash rate by a quarter of a percentage point in both March and May to a peak of 4.35 per cent.