RBA Set to Raise Interest Rates Amid Ongoing Inflation Concerns

The Reserve Bank of Australia (RBA) is set to raise interest rates for the fourth time in a row, with borrowing costs likely to hit 4.6% - their highest level in 15 years.

The decision comes as inflation remains a major concern, with economists debating who or what is responsible for the rising price tags.

While government spending and external factors such as conflict in the Middle East are being pointed to as causes of inflation, opposition frontbencher James Paterson argues that government stimulus levels are a significant contributor.

The RBA's governor Michele Bullock has stressed that interest rate decisions are not designed to target house prices, but economists believe lower property prices could be linked to consumers tightening their belts and reducing demand, which in turn could help reduce inflation.