TD Securities Forecasts RBA to Hike Cash Rate by 25bps to 4.60% in September

TD Securities anticipates that the Reserve Bank of Australia (RBA) will increase its cash rate by 25 basis points to 4.60% at the upcoming late-September meeting. This forecast follows stronger-than-expected economic data for Australia’s second quarter, particularly robust GDP growth and firm discretionary consumption, according to Prashant Newnaha of TD Securities as reported by FX Street.

The expected rate hike reflects the RBA’s ongoing efforts to balance inflation control with economic growth, responding to recent domestic demand indicators. A 25bps increase would mark a continuation of the central bank’s tightening cycle amid resilient economic activity.

For Japanese investors and market participants, the RBA’s policy moves remain important given Australia’s role as a major trading partner and the influence of Australian rate changes on regional FX and commodities markets.