In an article by Ben Abbott from Broker News he had written that Australian major banks may lift interest rates before the next meeting of the Reserve bank board in November, despite the central banks’ decision to hold steady recently, according to Australian Finance Group’s Mark Hewitt.

Recently the RBA board held the official rate steady at 4.5% for the fourth consecutive month.

However, AFG managing director Mark Hewitt said” It will make it a bit harder to move outside an RBA rate rise but I still would expect we will see them moving some time – and I wouldn’t be surprised if that is before the next Reserve Bank meeting”.

The comments follow indications by banks that increasing funding costs would force them to move on rates regardless of the RBA setting, with CBA head of retail Ross McEwan having publicly called this a definite over coming months.

Commenting on the RBA decision, Hewitt said it would give people a bit more confidence in their property purchases, and would also give the RBA more time to digest conflicting economic data. However, he said the official decision to hold was likely a “temporary reprieve”. “I think on balance, speaking to some economists whose opinions I respect, I think it is probably inevitable we will have at least a further rate rise before xmas – I’m not so sure it’s justified but I think it’s pretty inevitable.”