RBA Seen Lifting Rate to 17-Year High on Oil Shock, Westpac Says

Australia’s central bank will likely raise its benchmark rate three more times this year, taking it to more than a 17-year high amid the war in the Middle East and signs that rising fuel costs are feeding into prices, according to Westpac Banking Corp.’s Luci Ellis.

The firm’s chief economist sees a third straight hike by the RBA in May, followed by increases in June and August, which would lift the cash rate to 4.85% — the highest since late 2008 — from 4.1%. The forecasts align with money market pricing, which also implies a strong chance of three more moves this year.