Market analysis: The Reserve Bank of Australia may "raise interest rates once only" in February.

The Reserve Bank of Australia is expected to raise the official overnight cash rate by 25 basis points to 3.85% next week, but there are compelling reasons to believe that this may be a one-time hike for the central bank. Economist Adelaide Timbrell of ANZ Bank said that core inflation is currently clearly too high, but may cool down later this year. She noted that there are signs of inflation easing in the December CPI data, with a monthly trimmed mean of 0.2%. This suggests that quarterly trimmed mean inflation may slow down slightly from this point.