Australia's central bank is widely expected to raise interest rates on Tuesday, lifting the cash rate to 4.6 percent, the highest level since November 2011.

The Reserve Bank board meets on Monday and Tuesday, with the decision due at 2:30pm local time. Markets put the chance of a 25-basis-point rise at about 90 percent, and all four major banks are forecasting the move, which would be the fourth hike this year.

The bank is under pressure from stubborn inflation, rising oil prices and stronger-than-expected economic data. Commonwealth Bank economists said the combination of hot inflation figures, Brent crude above 100 dollars a barrel and hawkish signals from the bank had tipped the balance toward a September move.

Unemployment has crept up to 4.6 percent, but economists say the bank is losing patience with inflation that has stayed above its target band for months.

A hike would add about 100 dollars or more to monthly repayments on a typical home loan, according to economists.