Interest rates will rise today, economists say in near-full agreement

RBA DECISION DUE AS MIDDLE EAST SITUATION ESCALATES

The Reserve Bank of Australia (RBA) will announce its latest interest rate decision this afternoon, days after it was revealed inflation had risen to 4.6% and as the war in the Middle East appears to be escalating once more.

The AAP reports this morning the financial markets have been pricing in the chance the RBA will raise the cash rate by 25 basis points at more than two-thirds.

Economists at the Commonwealth Bank, NAB, ANZ, Westpac, AMP, Deutsche Bank, Challenger, JP Morgan, HSBC and Citi have all predicted a rate hike today.