Australia Set for Second-Highest Interest Rate in Developed World

Australia's Reserve Bank governor Michele Bullock is expected to deliver an interest rate rise on Tuesday, which would put Australia second-highest in the developed world. Financial markets are certain that the RBA board will increase rates for the fourth time this year, after stronger-than-expected data pointed to stubborn domestic inflation pressures and a tight labor market.

The upcoming rate hike is expected to be 25 basis points, with some analysts predicting further increases before the end of the year. This move would counter the Albanese government's efforts to convince voters that it is helping with the cost of living.