Economists at the nation's biggest bank now expect the Reserve Bank of Australia will start lifting the cash rate in June, rather than their earlier prediction of a move in August.
Commonwealth Bank senior economist Gareth Aird is anticipating inflation to be a lot stronger than the RBA is forecasting, which will lead to a rise in the cash rate to 0.25 per cent from a record low 0.1 per cent at the June board meeting.
RBA governor Philip Lowe has indicated he would want to see a couple more quarterly inflation reports before lifting the cash rate, which would be consistent with a move in August.
