Citi touts February rate hike in a bold call for the RBA

Citi is the first major bank to forecast an interest rate hike in Australia as soon as February after a run of hot economic data on inflation and consumer spending, joining a small cohort calling for a policy pivot in 2026.

Citi, which was one of a few to correctly predict the Reserve Bank of Australia’s decision to keep the cash rate on hold in July, had previously expected the cash rate to stay at 3.6 per cent for all of next year.

Source: https://www.afr.com/markets/debt-markets/citi-touts-february-rate-hike-in-a-bold-call-for-the-rba-20251212-p5nn3v