BENGALURU, March 3 Reuters The Reserve Bank of Australia will hike its interest rate again by 25 basis points to 3.60 on Tuesday, followed by one more lift next quarter, before pausing until next year, taking the peak rate higher than previously thought, a Reuters poll found.

Despite 325 basis points in rate increases since May, controlling inflation has been a major challenge for the RBA as it reached a more than threedecade high of 7.8 last quarter, considerably above the target range of 23.

The central bank was forced to abandon its previous plan to pause at its February policy meeting and signaled more rate hikes could be needed in the months ahead.

All but one of the 28 economists in the Feb. 27March 2 Reuters poll said the RBA would raise its official cash rate by 25 basis points, reaching a more than decadehigh of 3.60, at its March 7 meeting. One saw a 15 basispoint move.

The RBA does seem more concerned about inflation. The fact demand is a key driver and not just the supply side, we think they have got more work to do to ensure inflation comes back to target, said Catherine Birch, senior economist at ANZ, who forecast a 25 basis point hike at the upcoming meeting.

It is then expected to lift rates to 3.85 in the AprilJune quarter a level not seen since April 2012 and hold them for the rest of the year.

The minutes from last month39;s meeting showed the RBA discussed only two options hiking by 50 basis points or 25 basis points. This was a marked…