VIDEO: Aussies brace for next rate rise, following inflation

Australia’s monthly Consumer Price Index Report has Australians bracing for yet another rate hike, but there’s growing optimism that inflation has peaked. 

Shares of banks and other financial institutions rose as traders bet the sector would benefit from a slower pace of rate increases.

New Australian Bureau of Statistics (ABS) figures found inflation was as expected, rising 7.3 per cent over the year to November, as the cost of housing, food and travel increases.

The Reserve Bank of Australia next meets on February 7, and analyst consensus is a rise of at least 25 basis points. But even if the Fed's highest forecasts come to fruition, at most, only 1.25 percentage points of rate hikes are on the table for 2023.