This economics assignment analyzes the Reserve Bank of Australia's (RBA) interest rate decisions, focusing on the factors influencing these decisions and their potential impacts. The assignment begins with an overview of the RBA's stance on future interest rate changes, supported by the latest RBA minutes. It then explores three key reasons behind the RBA's likely decision to increase interest rates, including global trends such as the Federal Reserve's actions, domestic economic growth, and improvements in the Australian economy. Furthermore, the assignment examines the implications of these interest rate changes for a specific client, considering the dual effects of increased borrowing costs and currency exchange rate fluctuations. It concludes that the overall impact on the client may be minimal due to an automatic hedge. The assignment draws upon macroeconomic principles and relevant references, offering a comprehensive analysis of the topic.