RBA’s search for inflation sweet spot tipped to raise interest rates to 2.35 per cent

RBA governor Phil Lowe is expected to announce an interest rate hike next week, but experts say the RBA is about to slow down. Photo: AAP

Many households face another $144 mortgage hike in September, with the Reserve Bank expected to announce a fifth rise in interest rates since May in an effort to curb inflation.

The RBA is forecast to raise its cash rate target 0.50 percentage points to 2.35 per cent next Tuesday, in what economists say will be a turning point for the central bank’s battle to control inflation.