Mortgage holders could be just weeks away from further interest rate hikes as the Reserve Bank’s second-in-command says the central bank will do what it takes to get inflation back to target. In a sobering update for cash strapped households economists warn Australia’s cash rate will be lifted for the fourth time, bringing it to a 15-year high of 4.60 per cent.The last time rates were above 4.50 was November 2011. On Wednesday, Macquarie Bank became the latest major financial institution to call a rate hike when the Reserve Bank nexts meets on September 28-29. “With unemployment still around three quarters of a percentage point below the pre-Covid level, the RBA now seems to feel that output remains above the economy’s potential, suggesting that more needs to be done to bring inflation back to target,” Macquarie Bank’s chief economist Ric Deverell said. Mr Deverell’s comments followed an interview with RBA deputy governor Andrew Hauser where he warned inflation was simply too high. “Inflation is too high, and that’s why we raised interest rates three times at the beginning of this year. And the question now, frankly, for us, is have we done enough or is more needed,” Mr Hauser said on the ABC’s 7.30 program on Tuesday.Mr Hauser said the board was “very clear” it had to hit the 2 to 3 per cent inflation target, aiming at the midpoint.“We are doing it over a longer period then some other central banks have done and we are doing it to protect the jobs gains that happened in Covid.”“But if it becomes clear that is not a feasible path we will take another path and that is raise interest rates further than we otherwise we would need to do so.Mr Hauser said despite the risks to rising inflation, a September interest rate hike was not a foregone conclusion.All four major banks call an interest rate hike this yearEven if households are spared further interest rate pain in September, experts warn it could just be a matter of timing before a fourth interest rate hike comes through.In her latest economic note Westpac chief economist Luci Ellis – who worked for the RBA for more than three decades – said her base case was an interest rate hike in November., purely because it gives the RBA time to look at quarterly data.Ahead of their next meeting the RBA will only get monthly inflation and jobs figures, which are often move around more than the quarterly figures. “Tactically, we believe RBA leadership would strongly favour a November hike over September,” she said. “On balance, we do not think a September hike this is the most likely outcome and expect the Monetary Policy Board to prefer to wait for the full quarterly inflation data and revised forecasts to confirm the need for a rate increase.”“Clearly the probability of the September scenario is not zero, however. We will therefore be watching today’s RBA communication closely for signs that the leadership is anxious to move.”Commonwealth Bank and ANZ also believe interest rates will be held until November, again due to timing of quarterly data. National Australia Bank has bucked the trend and called the next interest rate hike will occur in September. NAB chief economist Sally Auld forecasts interest rates will rise in September after previously calling a hold.“July CPI data showed inflation running hotter than the RBA expected in early August, and the RBA has repeatedly signalled in recent weeks that the Monetary Policy Board would act if upside risks to inflation were realised,” Ms Auld said.“The risk is biased towards an additional hike in November, especially if activity data shows resilience in coming months.”Need to do a better job telling the publicThe deputy governor of the Reserve Bank has conceded the central bank needs to do a better job of explaining their interest rate decisions to the public.Speaking to the ABC’s 7.30 on Tuesday, RBA deputy governor Andrew Hauser said he was recruited from the UK to help modernise the central bank’s position in the minds of the general public.“People are furious about inflation, I understand why; it’s unfair, it hits people on low incomes.“It damages price signals. It makes the job of companies difficult. What they want us to do is our job and bring inflation down.“Everywhere I go, I hear ‘costs costs costs, inflation inflation inflation’. And that’s our responsibility. We have to put that right.“And yes, we have to explain ourselves. Yes, we should communicate better.”The Australian sharemarket puts a 70 per cent chance interest rates are hiked again next month, to 4.6 per cent, which would be the fourth 0.25 per cent hike this year, and take interest rates to their highest point since October 2011.The US Federal Reserve is currently expected to hike next week above the current 3.8 per cent rate.The European Central Bank is tipped to hike 25 basis points to 2.5 per cent on Thursday.Speaking on Tuesday, the RBA deputy said a hike next month was not inevitable.“The economy in Australia, in many ways, is doing quite well,” Mr Hauser said.“We’ve got growth roughly at trend. We have unemployment near historic lows, employment growth driven by the market sector, and real household incomes are growing pretty strongly.“So there’s a lot to like about this growing economy. But we have one big problem and that’s inflation … that’s why we raised interest rates three times at the beginning of this year.”The three major inflation risks the RBA board will mull next month are the ongoing conflict in the Middle East, a “really unexpected global boom driven by AI”, and “weakness of the supply potential” of the Australian economy.But the RBA deputy conceded the 10 vote-casters around the central bank board need to give the Australian public a better explanation of their decisions.He was asked about the discrepancy between those unemployment, employment growth and household income indicators which suggest the economy is improving, against the crushing cost-of-living pressures felt across the country.“Sorry, I meant to say on a number of macroeconomic measures, it looks like it’s doing well. But as you say, consumer confidence is weak.”Asked about the public’s perception of the RBA, Mr Hauser said people in general did not understand the central bank’s mission.“I certainly don’t. And I don’t mean that to be limited to the RBA. I think that’s true of central banks everywhere.“I was asked to come here and do this job from the UK, in part to help the RBA modernise.“Central banks have a big job to do. We’re unelected officials. We have to get out there and explain ourselves and we have to listen.”The deputy governor said he was spending a lot of time travelling the country and speaking with companies, local authorities and organisations.One aspect he said was misunderstood about the RBA was the differing positions board members hold and argue.“I wouldn’t take for granted, we have a genuine spread of people and views about the economy on the board. And we have a real debate,” he said.“If it were inevitable, you wouldn’t need us. You could replace us with an AI bot. It might happen one day, but I’m not sure it’s happening at the moment,” he said.