Australian Housing Market Faces Tougher Downturn as RBA Prepares Rate Hike

Australia's housing market is facing a tougher downturn as the Reserve Bank of Australia (RBA) prepares to raise interest rates for the fourth time this year.

The RBA is expected to increase its cash rate to 4.6%, its highest level in 15 years, according to market pricing and a survey of economists conducted by Reuters.

RBA Governor Michele Bullock has pointed out that the economy operates in a different environment from the period of low inflation and relatively open global trade.

The rapid expansion of data centres is increasing demand for goods and services, while government spending on areas such as defence and healthcare is expected to remain high, contributing to longer-term borrowing costs.