RBA Set to Slam Brakes on Economy with Third Consecutive Rate Hike

The Reserve Bank of Australia (RBA) is set to raise interest rates for the third consecutive time, pushing borrowing costs to their highest level in 15 years. The RBA's two-day meeting on Monday will likely result in a rate hike to 4.6 per cent, as predicted by economists.

Deputy Prime Minister Richard Marles blamed external factors, particularly the conflict between the US and Iran, for driving inflation up. However, opposition frontbencher James Paterson disagreed, pointing out that government spending at 'stimulus levels' was a significant contributor to rising prices.

The Australian Bureau of Statistics will release its inflation figures on Wednesday, which are expected to show headline inflation rising from 3.5 per cent to four per cent due to higher fuel costs. The US, Europe, and Japan have all hiked interest rates in response to the global economic pressures.