RBA Rate Hike Looms as Inflation Woes Deepen

The Reserve Bank of Australia (RBA) is all but certain to raise interest rates next week, with market expectations rising to 88% from an already high 72% at the start of the month.

Economic headwinds continue to hit Australia, with inflation remaining high and oil and fuel prices remaining elevated due to the ongoing conflict in the Middle East.

According to CreditorWatch chief economist Ivan Colhoun, the key question is not whether the RBA will raise interest rates next week, but how much worse the pain could get for millions of Aussies in the coming months.

Colhoun suggests that the RBA may need to deliver back-to-back interest rate rises in September and November to ensure inflation finally starts to decrease.

The issue is that despite the RBA bringing up the cash rate three times this year, the amount of money in circulation remains high, contributing to ongoing inflation woes.