RBA Hike Looms: Can BetaShares AAA Ride the Rate Wave?

The Reserve Bank of Australia (RBA) is widely expected to raise interest rates next week, and BetaShares Australian High Interest Cash ETF (ASX:AAA) could be a quiet beneficiary of this decision.

The RBA's move is almost certain, despite the recent jobs data showing an unemployment rate increase. Economists have been quick to adapt their expectations, with all major banks now forecasting a September rate hike and some predicting a follow-up increase in November.

BetaShares Australian High Interest Cash ETF (ASX:AAA) earns its returns from deposit accounts with large Australian banks and passes the interest back to unit owners as monthly distributions. Its yield tracks the official cash rate, so when rates rise, the fund's income follows suit.