RBA Seen Delivering Decisive Rate Hike on Tuesday

ING economists Deepali Bhargava and Lynn Song believe the Reserve Bank of Australia (RBA) will increase interest rates by 25 basis points. They cite a still-strong economy, tight labor market conditions, and higher-than-expected Gross Domestic Product (GDP) and inflation readings.

The economists note that while there is some cooling in the housing market, they see risks to inflation as skewed towards higher prices. They expect the August Consumer Price Index (CPI) to rise further, driven by diesel and food price increases, alongside persistent core pressures.

RBA rate hike expected on Tuesday