Australian shares face flat open ahead of RBA rate decision

• The Australian share market faces a flat open as investors anticipate a potential fourth interest rate increase this year.
• The S&P/ASX 200 Index has fallen 4.5% in September, wiping out all of its year-to-date market gains.
• Persistent inflation pressures and elevated oil prices are driving forecasts of further central bank monetary tightening.

The S&P/ASX 200 Index is poised for a flat opening as investors prepare for an expected fourth interest rate increase this year.

The cautious outlook follows a 4.5% decline for the benchmark index during September, which effectively erased all local stock market gains for the year.

"We expect the RBA to retain a tightening bias and see a reasonable path towards a terminal cash rate closer to 5%," said State Street Investment Economist Krishna Bhimavarapu.

Every economist surveyed in a recent Reuters poll predicted the central bank will raise the cash rate by 25 basis points to 4.6%.

Economists caution that continued global rate hikes alongside high energy prices could ultimately increase risks to broader economic growth.

Upcoming monthly inflation data is expected to show headline price growth accelerating to an annual rate of 4%.