<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Two of the big four banks are now predicting a fourth consecutive rate rise to start the year as the Reserve Bank of Australia (RBA) tries to fight rising inflation, caused in part by the war in the Middle East.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/finance/rba-interest-rates-live-updates-may-2026-decision-latest-news-headlines/712337f5-b510-4280-9a17-a45d7826e847" rel="" target="_blank" title="The RBA yesterday raised the cash rate by 25 basis points"><span>The RBA yesterday raised the cash rate by 25 basis points</span></a><span> to 4.35 per cent for the third time, effectively unwinding last year's round of cuts.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Governor Michele Bullock acknowledged that Australians were "feeling poorer" but said the increase was necessary to give the central bank "space" to assess the global and domestic situation.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span> </span><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/interest-rate-hike-thousands-of-australians-including-full-time-workers-pushed-into-mortgage-stress/85dbe82b-c60d-419f-bea5-b59a15cec190" rel="" target="_blank" title=""><strong><span>Damning sign proves thousands of Aussies face a ticking mortgage timebomb</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Today, NAB updated its monetary policy forecast, and now predicts rates to be raised again to 4.60 per cent at the RBA's next meeting in June.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The governor explicitly called the 'wait and watch' strategy the 'wrong term' in her press conference, and so it doesn't appear that the board thinks it has time on its side," the bank's economists Sally Auld and Gareth Spence wrote.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"This, together with the board's clear preference to prioritise the price stability aspect of its dual mandate given a broadly benign labour market forecast, suggests to us that the next rate rise will come in June."</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/reserve-bank-of-australia-decision-westpac-and-nab-predict-a-fourth-rate-rise/150bab6e-6a16-43f2-96c8-cf90655c7560" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Westpac had been predicting further rate rises before yesterday's hike, but believes it may not be until later this year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/isis-brides-return-australia/ae0c5676-c9ec-46e2-9d27-dfce7e46db01" rel="" target="_blank" title=""><strong><span>Some members of ISIS-linked cohort returning to Australia will be arrested</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We think the chance that they now hike rates in June is less than what we thought before, I mean, it was never a certainty but it was our base case," the bank's chief economist Luci Ellis said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"But we still think that there are likely to be rate hikes from here, but perhaps pushed out a bit from what we previously thought."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The remaining big four banks, Commonwealth Bank and ANZ, are currently predicting a hold in June.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/finance/interest-rate-hike-australia-big-four-banks-pass-on-increase/5e4f696f-1322-4df8-9bbe-15cee5f9bc68" rel="" target="_blank" title="All four big banks passed on yesterday's rate rise onto their customers"><span>All four big banks passed on yesterday's rate rise onto their customers</span></a><span>, which will take effect in the coming weeks.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><strong><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 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