Australia Likely to Lift Official Interest Rate to 4.6 Percent, Deutsche Bank Predicts

‘Australia is the only G10 country where underlying inflation has increased since December,’ Deutsche Bank’s chief economist said.

A man walks past the Reserve Bank of Australia sign in Sydney, Australia, on Sep. 6, 2016. William West/AFP via Getty Images

One of the largest banks in Europe is predicting Australia’s official cash rate to rise significantly in the next two months.

Following the latest monthly inflation figures, a number of financial institutions and economists have revised their forecasts for the cash rate due to increasing uncertainty in the Australian economy’s ability to rein inflation.