HSBC's chief economist Paul Bloxham says if the central bank doesn't raise official interest rates at its meeting tomorrow, it is likely to do so before the end of the year.
Mr Bloxham has told ABC's Inside Business program interest rates need to rise, because the outlook for the economy is very strong, and the next upswing is starting with inflation at a relatively elevated level.
He says it is a close call as to whether they go up this week or in November, but he believes they'll go up by the end of the year by 25 basis points.
Mr Bloxham says the strong dollar will help hold down inflation and shield the economy from more interest rate hikes than would otherwise occur.
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