RBA set to raise rates as inflation pressures mount

The Reserve Bank of Australia is expected to announce a 25 basis point interest rate rise in its first rate decision of the year, impacting millions of mortgage holders and prospective home buyers. HSBC Chief Economist Paul Bloxham explains the decision is driven by inflation rising above target while the economy remains in an upswing with a tight labour market. The discussion highlights concerns about Australia's economic growth constraints, with calls for policy reforms in taxation, industrial relations, competition and deregulation to improve productivity and allow faster economic expansion.

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