The Commonwealth Bank of Australia (ASX: CBA) share price has fallen 1.25% this week. That's in contrast to the 0.9% loss on the S&P/ASX 200 Index (ASX: XJO).
It's not just CBA shares down though. All the big 4 banks are in the red today, following losses on the major US exchanges yesterday (overnight Aussie time).
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CommBank in the news this week
CommBank made financial headlines on Wednesday, when the bank's economics team forecast that inflation is likely to rise faster than the Reserve Bank of Australia (RBA) is predicting.
The RBA remains steadfast that inflationary pressures are unlikely to be enough for it to lift the official cash rate above today's rock bottom 0.10% no sooner than 2024.
CBA's economists formed a different view. They forecast that there's a significant chance strong employment and wages growth will push up inflation to the point where the RBA may need to begin nudging up interest rates as early as the end of next year.
On Wednesday, the day of the forecast, CBA shares closed up 1.1%, the only day this week shares closed in the green.
CBA shares were also on the Motley Fool's radar yesterday. That came after the analysts at Bell Potter forecast CommBank will deliver a net profit after tax (NPAT) of $8.5 billion for the 2021 financial year, up 16.5% year-on-year.
Bell Potter also raised its price target for CommBank to $105.00 per share, while it lowered its rating from "buy" to "hold" for the shorter term.
How has the CBA share price been moving?
At the current price of $98.59 per share, CommBank is now 7.4% below its record closing high of $105.91, set on 17 June.
CBA shares closed above the psychologically significant $100 mark for the first time ever on 28 May, finishing the day at $100.56.
The CBA share price is still handily outperforming the ASX 200. CBA shares have gained 39% over the past 12 months and are up 17% year-to-date.
