ANZ forecasts increase in interest rates
She told ABC News that the central bank has few options left to it and asserted that ANZ expects the financial institution to push rates up to five per cent.
"We think that by moving 25 basis points next month they are avoiding the potential pain of having to raise rates by even more later this year or early next year," she stated.
Earlier forecasts from ANZ suggested that there would not be an increase in the cash rate until February 2012.
Ms Dean's prediction contradicts that of Westpac chief economist Billl Evans, who recently asserted that rates are more likely to be dropped than increased.
Currently, interest rates stand at 4.75 per cent, which was set in November 2011 when it was increased by 25 basis points.
The RBA board are due to meet on August 2nd to decide if a rate change is appropriate.
Get more information on the latest Reserve Bank interest rates with Mozo.