NAB has ditched forecasts of a further two interest rate cuts as the Reserve Bank of Australia (RBA) board prepares for next week's meeting on the cash rate.

The change came after yesterday's ABS figures showed inflation hit a 12-month high for the month of August.

The annual trimmed mean inflation, the RBA's preferred measure of underlying inflation, was at 2.6 per cent for the month.

Before the release of the data, the NAB expected two further cash rate cuts, the first in November, followed by next February.

Now it expects the RBA to leave the cash rate on hold when the central bank wraps up its meeting next Tuesday afternoon.

Last month it decided to slash the cash rate by 0.25 per cent to 3.6 per cent.

NAB now forecasts no reduction until next May.

Currently, the three other

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