Traders Boost Bets on World’s First Rate-Hike Cycle in Australia

Australia is on track for the world’s first tightening cycle of 2026 as economists and markets ramp up bets on another interest-rate increase, marking a sharp reversal for a central bank struggling to contain resurgent inflation.

Two of Australia’s big four banks as well as Goldman Sachs Group Inc. switched their calls since the Reserve Bank of Australia on Tuesday became the first major monetary authority in the world to raise rates this year. They now see another hike in May to take the cash rate to 4.1% after policy makers boosted borrowing costs by 25 basis points to 3.85%.