SINGAPORE (Reuters – Australia’s four largest banks are expecting the benchmark cash rates to rise next week. One bank is more concerned about a possible hike following a strong Wednesday inflation reading.

National Australia Bank (OTC) and ANZ Bank pushed forward their liftoff forecasts for June and May. They expect a 15-basis point increase next Tuesday. While the Commonwealth Bank of Australia (OTC 🙂 acknowledged that there was a risk of a rise in cash rates, it didn’t change its June forecast.

Westpac predicted a 40% increase in the June rate last week.

On Wednesday data showed that inflation was at its highest point in two decades.

Swap-market wagers on a 15-bp increase were priced to price about 90% of the chance that the benchmark cash rate will be raised from 0.1% to 0.35%, a new record low.