RBA Interest Rate Hike Looms as Inflation Persists

Australia's central bank is likely to raise interest rates before the end of the year, according to CreditorWatch Chief Economist Ivan Colhoun.

The Reserve Bank of Australia (RBA) left rates unchanged in August, but Colhoun believes that further tightening may be needed if inflation does not start to moderate soon.

Consumer confidence rose 6% in August, but remains about 10% below its level a year earlier and is still in pessimistic territory. The biggest monthly gain came from views on family finances, which rose 12.6%, while the willingness to buy major household items increased 8.1%.