RBA Rate Hikes Send ASX into Another Sell-Off

The Australian sharemarket is set to resume its sell-off on Monday as investors adjust to the increasing likelihood of three interest rate hikes by the Reserve Bank of Australia (RBA).

Futures indicate that the S&P/ASX 200 will open 0.7 per cent lower on Monday, extending a sell-off that has already dragged the benchmark index down nearly 4 per cent this month and wiped its gains for the year.

The RBA's move to lift interest rates is aimed at staving off stubborn inflation, which is expected to be a major challenge for the Australian economy in the coming months.