Financial analysts at Morningstar are predicting a moderation in profit growth for Australian companies for fiscal year 2024.

They attribute this trend to the anticipated rise in interest rates and operating costs.

These higher operating costs are expected to squeeze the profit margins of Australian firms.

Major banking institutions such as ANZ Group (ASX:ANZ), National Australia Bank, and Westpac are scheduled to announce their annual results in November.

According to Morningstar, a key area to watch will be the growth in expenses within the banking industry, particularly in relation to wage inflation.

The Australian index is anticipated to remain under pressure and fluctuate within a relatively narrow range of between 6,800 and 7,200 throughout the December quarter, as stated by Morningstar.

They added that the progress of stimulus from Chinese authorities will have a significant impact.

ANZ Group (ASX:ANZ) is one of the largest banking and financial services entities in Australia.