RBA Set to Hike Rates to Record High Amid Ominous Housing Market Signals

Australia's housing market is facing its worst downturn in decades as the Reserve Bank of Australia (RBA) prepares to raise interest rates for a fourth time. The cash rate is expected to reach 4.6%, a 15-year high, next Tuesday.

Rising inflation and increased borrowing costs are making it difficult for the RBA to manage demand in the economy. Despite falling house prices, which have dropped nearly 4% from their peaks, policymakers believe that higher rates are necessary to contain inflation.

Luke Yeaman, chief economist at the Commonwealth Bank of Australia, said 'This means the slowing economy will not bring much in the way of immediate or major rate relief for Australian households.'