Two major banks in Australia expect the Reserve Bank of Australia to start raising interest rates in February.

The Commonwealth Bank of Australia is currently expected to raise interest rates once next year to 3.85%, but the bank's economist Belinda Allen has stated that there is a risk of a "larger rate hike cycle" if growth momentum strengthens and inflation becomes more persistent. The chief economist of the National Australia Bank, Sally Auld, predicts two rate hikes next year, in February and May, with the final rate reaching 4.1%.