RBA Poised for Consecutive Rate Hikes Amid Persistent Inflation

The Reserve Bank of Australia (RBA) is expected to raise interest rates for the second time in a row, following the Federal Reserve's rate hike. According to a survey of economists, the RBA will increase the cash rate by 25 basis points to 4.6% on September 29, which would be the highest level since November 2011.

The decision comes as policymakers grow increasingly impatient with persistently high inflation, which rose 3.5% year-on-year in July and exceeded forecasts. Core inflation also remained above target at 3.6%, despite headline inflation easing compared to June.

Despite the RBA's previous pause on rate hikes since May, economists believe another increase is necessary to curb inflation. Royal Bank of Canada expects another rate hike in November, pushing the benchmark interest rate to 4.85%, the highest level since November 2008.