RBA to Deliver Hawkish Rate Hike Amid Persistent Inflation Pressures

The Reserve Bank of Australia (RBA) is likely to increase interest rates by 25 basis points on September 29, marking a hawkish move to combat persistent inflation pressures.

This decision comes as the economy faces resilient labour demand and higher energy costs, strengthening the case for keeping policy restrictive.

The RBA's move should provide some support for the Australian dollar (AUD), which has been suffering from a deterioration in the external environment but still boasts solid fundamentals.