RBA Rate Hike Risk Revived by Hot Inflation as Markets Rapidly Reprice

The Reserve Bank of Australia may not be finished with tightening after all. A stronger-than-expected inflation print has forced economists, traders and investment banks to rethink the rate outlook, marking one of the sharpest shifts in monetary expectations this year.

Barrenjoey and US, two of the country's most influential macro forecasting houses, now expect the RBA's next move could be a rate increase, not a cut. That pivot comes after October CPI accelerated to 3.8%, well above the 3.6% expected and the fourth straight monthly increase. More importantly for monetary policy, trimmed mean, the. . .