The RBA are expected to raise interest rates by 25bp to 3.35% tomorrow, which would take rates to their highest level since September 2012. If so, it would be their fourth consecutive 25bp hike and ninth back-to-back hike this cycle – which is their most aggressive in history. Even so, their rates remain well below RBNZ’s 4.25% and the Fed’s 4.75%, which is concerning given both of those central bank started hiking considerably sooner than the RBA, and continue to battle high levels of inflation. {chart}Still, there is evidence that the (relatively low) interest rate is starting to bite on the economy. If we look at ... (full story)