News: CBA UPDATE 1-Brokerages sees Australia's cash rate peaking as high as 4.85%

(Adds Goldman Sachs and UBS expectations in paragraph 3)

SYDNEY, June 7 (Reuters) - Major global banks said on Wednesday they now expect the Reserve Bank of Australia to hike interest rates by another 25 basis points, most likely in August, after the central bank warned of further tightening.

Domestic banks Commonwealth Bank of Australia (CBA) and ANZ were joined by their global peers Goldman Sachs and UBS in forecasting an additional 25 basis point hike.

While CBA expects the cash rate to peak at 4.35%, Goldman Sachs believes it could hit 4.85%.

Gareth Aird, head of Australian economics at CBA, said there were risks that the hike could come as soon as July and that the cash rate could peak at 4.6%.

Australia's central bank on Tuesday raised interest rates by a quarter-point to an 11-year high, and warned that further tightening may be required to ensure that inflation returns to target.

"We viewed the speech as signaling a hawkish shift in the RBA's reaction function, which to date has been somewhat more dovish than global peers," Goldman Sach's Andrew Boak said.

Aird also pushed out the timing of the first rate cuts to the first quarter of next year, expecting a total of 125 basis points of easing by the end of 2024.