The Reserve Bank of Australia could push interest rates as high as 3.6 per cent by February as it scrambles to get high inflation under control, according to Morgan Stanley. The rates market is even more hawkish.

The investment bank upgraded its terminal rate – or peak cash rate – forecast from 3.1 per cent on Monday, saying the Reserve Bank is likely to tilt further towards inflation management and away from balancing growth risks amid surging global interest rates.