Morgan Stanley expect a final rate hike from the Reserve Bank of Australia in November

Morgan Stanley on a Reserve Bank of Australia rate hike still to come:

• The RBA now appears comfortably in data-dependent mode, with little suggestion that it needs to front-load the tightening that is incorporated in its forecasts
• However, its inflation path suggests little room for surprises
• As such, we now expect a final rate hike at the next forecast update in November, lowering our terminal rate forecast from 4.60% to 4.35%. The risk to our forecast is a more extended period on hold.

Comments come after the RBA left its cash rate on hold again this month:

• RBA leaves cash rate unchanged at 4.10% for a second straight meeting
• ForexLive European FX news wrap: Aussie knocked lower by RBA

Of the big four banks locally here in Australia, only NAB expect another rate hike:

• National Australia Bank expect one more Reserve Bank of Australia rate hike

ANZ, CBA and Westpac all expect the RBA hiking cycle is over.

RBA cash rate vs. inflation