Two More Rate Rises Predicted Before Christmas

Financial experts warn of at least two more interest rate rises before Christmas, as Australia's inflation rate remains above target.

The current cash rate is 4.35 per cent, after a 0.25 per cent increase in May, the third so far this year.

Economists expect another rate rise on September 29, citing oil prices and a recent US Federal Reserve decision to raise rates by 0.25 per cent.

Compare the Market's economic director David Koch said the RBA would be 'following the pack' if it raises rates, as other central banks have done in recent weeks.

'A weaker dollar makes everything we import dearer,' Koch noted, warning of higher petrol prices if the RBA doesn't increase rates.