RBA Set to Hike Cash Rate to Highest Level in Over a Decade

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

This decision comes as inflation data for August will arrive too late for the RBA's board meeting, but it seems they have already lost patience with keeping inflation below target.

Economists believe that the recent hot inflation figures and rising oil prices have accelerated the market's expectations of a rate hike. The US Federal Reserve, European Central Bank, and Bank of Japan have also increased rates recently, further supporting the need for a rate increase in Australia.