Australia’s Reserve Bank of Australia (RBA) is expected to raise its cash rate for a fourth time next Tuesday to 4.6%, a 15-year high, even as national house prices have fallen nearly 4% from their peaks. The housing market could face its biggest downturn in a generation, with economists increasingly forecasting a 10% peak-to-trough decline and HSBC projecting 13% if rates rise twice more. The RBA is prioritizing persistent inflation risks linked to an overseas war, oil prices above $100 a barrel, data-centre investment, immigration and elevated government spending on defence and healthcare. Governor Michele Bullock said supply-side shocks are difficult for monetary policy to manage, while Commonwealth Bank of Australia chief economist Luke Yeaman said slower growth would not bring significant immediate relief to households. Markets are fully pricing a further increase to 4.85%, with a 70% chance of rates reaching 5.1%.