Economists are convinced that the Reserve Bank of Australia (RBA) will move for a rise on its policy rates come November 2, notwithstanding the better inflation readings furnished by the Australian Bureau of Statistics (ABS) in the September quarter.

The ABS reported on Wednesday that the country's headline consumer price index (CPI) grew by 0.7 percent in the third quarter of 2010, leading to an annual rate of 2.8 percent while the trimmed mean CPI and the weighted mean CPI surged by 0.6 percent and 0.5 percent respectively for an average annual growth pace of more than two percent.

From its current rate of 4.5 percent, economists said that the RBA would likely push up the cash rate to 4.75 percent when the board convenes anew on Tuesday next week.

JP Morgan economist Helen Kevans said that the next rate decision would be a tough call for the country's central bank as she argued that the headline inflation rate already breached the so-called RBA comfort zone which should be "enough to push the RBA over the line next week."

The latest figures, according to Ms Kevans, may be a notch lower from projections but they also pointed to indications that domestic price pressures were quite strong, sufficient reason for the RBA to lift the interest rates, as she added that if an upward movement is opted out for November then a December increase should be a stronger case.

She added that further delaying the inevitable rate hike for next year would only spawn unnecessary anxiety on the market environment as a pause for the last two months of the year would mean a policy movement can be made only in February at the earliest.

On his part, CommSec chief economist Craig James believed that the latest ABS figures pointed to encouraging economic times for Australia, affording the RBA more time to contemplate on its policy rates.

While he admitted that inflation may still witness spikes between now and December or possibly until February net year, the anticipated economic growth could only result to a lift in cash rates as Mr James stressed that the Australian economy has been given a solid platform to revel.

Mr James said that the latest figures clearly indicated that "the economy is functioning well, interest rates can remain broadly where they are at present and all our consumers and companies can get on with life."