The US Federal Reserve’s openness to further interest rate rises and rapidly rising service prices in Australia means the Reserve Bank may not be done yet tightening the screws on the local economy.

Even though markets ascribe just a one in four chance the RBA will lift the cash rate to 4.35 per cent from 4.1 per cent at its August 1 board meeting, some central bank watchers fear traders could be wrong-footed again.