RBA rate call hangs on CPI: Big banks split as Australia inflation data looms
Australia’s interest-rate outlook narrowed sharply Tuesday, after Commonwealth Bank signaled underlying inflation could come in hotter than expected. The update revived the possibility of a rate hike from the Reserve Bank of Australia as soon as February. The inflation report set for Wednesday is the final key data before the RBA’s Feb. 2–3 meeting, arriving as household budgets are under pressure. Markets have swung sharply between “hold” and “hike” bets, with tiny shifts in inflation numbers tipping the scales.