Rate increase ‘more likely this year’ after RBA’s tough talk

The Reserve Bank may have to lift the cash rate as soon as August, according to an increasing number of economists and traders, as the central bank’s patience on inflation appears to be growing thin.

While the RBA left the cash rate at a 12-year high of 4.35 per cent this week, the board did consider raising borrowing costs but did not discuss the prospect of cutting them.