RBA Set to Raise Interest Rates for Fourth Time Amid Inflation Fears

The Reserve Bank of Australia (RBA) is set to meet on Monday and Tuesday to discuss interest rates, which are expected to rise for the fourth time in a row. Economists predict that borrowing rates will increase to 4.6%, their highest level in 15 years.

Deputy Prime Minister Richard Marles attributed the rising inflation rate to global factors, particularly the conflict in the Middle East, saying 'We've seen that play out at the petrol bowser, but we're also now seeing it in terms of global inflation and that's being experienced in advanced economies around the world.'

Opposition frontbencher James Paterson, however, disagreed with Marles' assessment, stating 'The government always has an excuse for why inflation is high and likes to point to external factors ... (they are) spending at stimulus levels.' He warned that another rate rise would be a 'body blow' for many households and small businesses.

The median property prices nationwide have dipped 3.6% since March's cyclical peak due to the removal of tax concessions in May's budget and three consecutive rate hikes, which have crippled buyer confidence.