Australian households face Melbourne Cup day interest rate hike amid persistent inflation threat

Key points

• Economists warn the Reserve Bank of Australia may raise interest rates again after a key inflation figure due on Wednesday. Market pricing has risen to more than a 60 per cent chance of a rate hike on Melbourne Cup day.
• Deputy governor Andrew Hauser said inflation looked materially worse than the central bank had projected in August. Treasurer Jim Chalmers said Australia is faring better than much of the developed world, though inflation remains a domestic challenge.
• RBA chief economist Sarah Hunter said the bank must control inflation for the benefit of everyone.