RBA Cash Rate Hike Predicted for Tuesday

The Reserve Bank of Australia (RBA) is expected to hike the cash rate again this Tuesday, according to Finder's latest survey. In the survey, 41 experts and economists weighed in on future cash rate moves and other issues related to the economy. The majority of panellists (90%, 37/41) expect the RBA to increase the cash rate to 4.60%.

The RBA is trying to balance its two mandates - maintaining employment levels and reducing inflation. Economists point out that underlying inflation remains above target, while the labour market is still relatively tight. The burden of higher interest rates falls disproportionately on mortgage holders and younger, indebted households.

Two hikes before the end of the year would mean homeowners would kick off 2027 paying $542 more on their monthly repayments than they did 12 months prior. Experts are divided on whether rate rises will work in slowing inflation, with some arguing that higher rates will do little to address global forces driving inflation.