Interest rate rise in Australia expected today

Australian industry groups say a rise in interest rates across the ditch today could be "justified" given the negative impact of rising inflation.

Economists believe a 0.25 percentage point rise in interest rates to 6 per cent by the Reserve Bank is almost certain.

Australian Chamber of Commerce and Industry (ACCI) chief executive Peter Hendy says that would add $2.9 billion to the interest bill of business over a year.

But he says inflation is costly to the economy.

"There's been a lot more talk about inflation, it would appear that there is a lot more emphasis on inflationary expectations, which we in the business community are particularly worried about," he said.

"The various economic statistics we've seen over recent weeks tells us that an interest rate increase may be justified."

Some economists are predicting a second rate rise by the end of the year.

- RADIO AUSTRALIA