Agriculture a factor in rising interest rates

Rising agricultural prices may contribute to a likely interest rate rise today.

Fears about inflation continue to pressure financial markets.

The Reserve Bank board is meeting today, and will announce its decision on official interest rates this afternoon.

CommSec's Savanth Sebastian says the market is expecting a rise of 0.25 per cent, to seven per cent.

"What is contributing to inflation is food prices, in particular fuel, and also the fact that we are seeing a strong demand for Australian commodities", he says.