RBA Set for Fourth Rate Hike Before End of Month

Australian homeowners are facing uncertainty as experts predict another interest rate hike before the end of the month. The Reserve Bank of Australia (RBA) is set to hold its next board meeting on September 28 and 29, with Macquarie Bank predicting a fourth rate hike will be delivered.

This would push interest rates to their highest level in 15 years, at 4.6 per cent if the RBA raises the cash rate by 25 points.

RBA assistant governor Sarah Hunter warned that the board 'may well have to raise interest rates to tackle' high inflation, which is currently above target at 3.5 per cent and has been for some time.

Dr Hunter noted that the RBA's priority was to bring inflation back to its target range of two to three per cent by the end of next year.