RBA Poised for Fourth Rate Hike Amid Rising Recession Fears

The Reserve Bank of Australia (RBA) is widely expected to increase interest rates by 25 basis points on Tuesday, marking its fourth hike this year. This decision would push the rate to its highest point since late-2011, reaching 4.6%. Economists agree that a rate rise is imminent, but there's less certainty about how much higher rates will go and when further increases might occur.

AAP Image/Susie Dodds

RBA Governor Michele Bullock is expected to provide a hawkish outlook on rates during her press conference. AMP Chief Economist Shane Oliver notes that inflation remains above target, with recent surges in energy prices and AI spending contributing to the issue.