RBA Likely to Raise Interest Rates to 4.6% in September: Economists

The Reserve Bank of Australia (RBA) is expected to raise interest rates as early as September, according to most economists. The benchmark interest rate is forecast to rise to 4.6% from its current level of 4.35%. RBA Governor Michele Bullock and senior officials have strengthened the confidence in this forecast with their recent testimony before Parliament.

The US Federal Reserve's interest rate hike has also contributed to the prediction that the RBA will raise rates in September. Some economists previously predicted a November rate hike, but it now seems likely that the RBA will act sooner rather than later. The benchmark interest rate could peak at 4.85%, its highest level since before the 2008 global financial crisis.

Fuel prices in Australia have risen sharply again, nearing their previous record highs. Unleaded petrol is currently priced at 235.40 cents/liter and diesel at 283.50 cents/liter. The recent surge in global oil prices has contributed to this increase, as well as the end of the government's preferential excise tax reduction policy.