RBA Set to Hike Rates Again Amid Stubborn Inflation

The Reserve Bank of Australia (RBA) is expected to raise interest rates on Tuesday for the fourth time this year. All four major banks - Commonwealth Bank, Westpac, NAB, and ANZ - forecast a 25-basis-point increase to 4.6%.

Markets also expect a hike, with traders pricing in a roughly 95% chance of a rate rise. This would take mortgage holders to the highest cash rate since 2011.

RBA Governor Michele Bullock has emphasized the need to bring inflation back down, warning that failing to do so would have worse consequences. Other hawkish remarks from deputy governor Andrew Hauser and assistant governor Sarah Hunter have added to the pressure for a rate hike.