Australia's economy expanded at a faster-than-anticipated pace in the second quarter, reinforcing arguments for another interest rate increase by the Reserve Bank as inflation remains stubbornly high.

The Australian Bureau of Statistics reported on Wednesday that gross domestic product grew 0.4% quarter-on-quarter, surpassing the 0.3% market consensus. On an annual basis, the economy expanded 2.1%, also exceeding the median forecast of 1.8%.

The latest figures indicate that the economy has weathered the central bank's three consecutive rate hikes earlier this year, with economic activity continuing to demonstrate resilience.

The Reserve Bank of Australia is scheduled to hold its policy meeting at the end of September. Sally Auld, chief economist at National Australia Bank, has shifted her stance following last week's robust inflation data, now predicting a rate increase in September. She noted that the risk "leans toward an additional move in November," particularly as economic activity data continues to show strength.