Out of the 16 economists surveyed eleven have forecast that the RBA will increase the cash rate by a quarter of a percentage point when it meets today.
The reason for the rate rise is due to Australia's strong economic outlook, but the RBA will have to take last week's higher than expected official inflation reading and the strengthening jobs market with the jobless rate heading towards 5.5 per cent.
Most of the economists surveyed by AAP felt that the cash rate would increase by between 75 and 125 basis points from 3.75 per cent by the end of the September quarter.
If the Reserve Bank does put interest rates up today would any of the banks be prepared to go against the Reserve Bank and go in excess of the official rate? The event of this happening is highly unlikely as there is the political pressure and the public outrage to contend with.
The National Australian Bank has set a precedent, coming out over the weekend by making a commitment that it will stick with the official RBA interest rate increase if any.