The Reserve Bank of Australia board is tipped to lift rates again, with another 0.5 percentage point rise likely on the cards.
Rates set to rise for fifth month in a row
The central bank’s September decision will likely spell higher repayments for mortgage holders, with another interest rate rise broadly expected.
The Reserve Bank of Australia board is expected to lift the official cash rates for the fifth month in a row when it meets on Tuesday.
Wages growth is weak but with a strong labour market and core inflation sitting at 4.9 per cent – well above the target band of two to three per cent – the Australian National University’s RBA shadow board has little doubt that rates will rise again.
Board chair Timo Henckel says it “strongly advocates” for another rate hike and recommends a 50 basis point lift.