RBA Set for Record-High Cash Rate Hike Amid Inflation Fears

The Reserve Bank of Australia (RBA) is expected to hike the cash rate to 4.6% on Tuesday, marking the highest benchmark borrowing rate since November 2011.

Money markets have almost fully priced in a September hike, with expectations firming since the release of unexpectedly hot inflation figures last month.

The RBA's 'reaction function' has shifted, with governor Michele Bullock and other top officials indicating that they are more determined to bring inflation down, even at the expense of jobs.