‘Not going to be pretty’: Another RBA rate hike looms

Economists are expecting the Reserve Bank of Australia (RBA) to lift interest rates by 0.5 per cent this afternoon.

It’ll be the third rate rise in as many months.

If the RBA increases the cash rate by another 50 basis points — bringing the rate to 1.35 — the average owner-occupier with $500,000 debt and 25 years remaining will see their repayments rise by $137.

Director of research at RateCity.com.au, Sally Tindall, says she “can’t see a world where they don’t pull the trigger on another double hike”.

“Inflation is already at 5.1 per cent and it’s now forecast to hit seven per cent by Christmas,” she told Heidi Murphy, filling in for Neil Mitchell.

“Even with these hikes they’re not predicting inflation to start coming down until next year.

“It’s not going to be pretty.”

Press PLAY below to hear what’s expected this afternoon