RBA Rate Decision Due: Markets Expect 25 Bps Hike to 4.60% Amid Inflation Concerns

The Reserve Bank of Australia (RBA) is set to announce its latest monetary policy decision at 0430 GMT, and markets are expecting a rate hike of 25 bps to 4.60%.

This would be the central bank's fourth rate hike this year, taking borrowing costs to their highest level since 2011, according to forecasts from Australia's four major banks.

While the rate hike itself is largely priced in by markets, traders are more interested in the RBA's guidance on future interest rates, particularly whether another hike could follow in November.

RBA Governor Bullock has warned that some of the inflation risks highlighted by the central bank may now be materializing, making the language in today's statement and his press conference afterwards crucial for market direction.