CBA sees first rate hike in November 2022

Meeting target: The RBA building in Sydney. Third-quarter data shows core inflation surprisingly jumped back into the RBA’s 2%-3% target for the first time since 2015. — Bloomberg

SYDNEY: Commonwealth Bank of Australia (CBA) brought forward its forecast for the reserve bank’s first interest-rate increase by six months to November 2022 after upgrading its economic outlook in response to the nation’s “remarkably high” vaccination rate.

CBA now sees the economy expanding 3.5% this year, versus a previous 3%, due to the earlier reopening of New South Wales and Victoria states amid rapid vaccination take up, according to a research note released yesterday.