RBA Set to Hike Rates for Fourth Time as Inflation Concerns Mount

The Reserve Bank of Australia is expected to raise interest rates for a fourth time this year at its September meeting, according to economists and market analysts. The central bank's leadership has taken a more hawkish tone in recent commentary, indicating that they are determined to tame high inflation even if it means sacrificing some jobs.

Reserve Bank Governor Michele Bullock said that getting inflation back within the 2-3% target band is now more important than ever due to the impact of the Middle East conflict on prices. Westpac chief economist Luci Ellis has also shifted her rate rise prediction from November to September, citing Bullock's comments.

JP Morgan analysts expect the unemployment rate to remain steady at 4.5% when new labour market data is released on Thursday, which they believe will not alter the Reserve Bank's outlook for the labour market. With markets pricing in a September hike at around 90%, Reserve Bank officials still have opportunities to rein in expectations if needed.

The upcoming interest rate decision comes as Wall Street investors are also focused on inflation worries, with benchmark Treasury yields topping 5% and crude prices above $100 per barrel.