RBA Set to Hike Interest Rate to 4.60% Amid Persistent Inflation

The Reserve Bank of Australia (RBA) is set to raise its official cash rate by 25 basis points to 4.60% on Tuesday, according to market expectations.

This decision will be accompanied by a Monetary Policy Statement and followed by RBA Governor Michele Bullock's press conference at 05:30 GMT.

The Australian Dollar (AUD) is expected to react significantly to the RBA policy announcement and Bullock's comments, as underlying inflation remains elevated while labor market conditions ease.

Australia's July inflation came in hotter than expected, with monthly Consumer Price Index (CPI) jumping 1.0% versus expectations of 0.8%, and annual inflation remaining at 3.5%.