Inflation figures could spell big rate hike

By Your Mortgage

By Robert Carry

The Reserve Bank of Australia (RBA) may raise the interest rate by as much as half a percentage point due to a higher than expected inflation rate, experts believe.

The September quarter consumer price index (CPI) report, set for release on Wednesday, is due to be discussed at the upcoming RBA on 3 November. According to The Australian, the CPI is expected to have risen by 0.9% in the September quarter to take the annual figure to 1.2%.

If the rate is on par with predictions, the RBA could raise the interest rate by as much as 50 basis points.