Interest rates: RBA weighs up risk of ‘climb shock’ ahead of decision

Economists split on how much Reserve Bank will lift cash rate on Tuesday as it looks to rein in inflation

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The Reserve Bank faces a delicate task of raising its key interest rate fast enough to quell inflation, but without causing so much climb shock" to household budgets that the economy stalls, economists say.

The central bank board meets on Tuesday with economists almost evenly split between tipping the cash rate will be lifted either by 25 basis points to 0.6%, or 40 basis to 0.75%, according to Bloomberg. Any rate rise would be the RBA's first back-to-back monthly increase in 12 years and possibly the biggest jump since a 50 basis point hike in February 2000.