Australians are bracing for a 10th consecutive interest rate rise as the Reserve Bank of Australia meets later today.
The central bank hiked the cash rate by 25 basis points in February to 3.35 per cent.
But at the time governor Philip Lowe foreshadowed more interest rate rises would be necessary to bring inflation back to target.
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Inflation rose 7.4 per cent in the 12 months to January 2023 – down from the 8.4 per cent rise in December 2022.
"The Board expects that further increases in interest rates will be needed over the months ahead to ensure that inflation returns to target and that this period of high inflation is only temporary," Lowe said in February.
Economists are today predicting another rise of 0.25 per cent which will bring the official cash rate to 3.6 per cent.
This would be the highest cash rate since 2012.
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On a $500,000 loan another 0.25 per cent increase would add $78 to monthly mortgage repayments.
While a $1 million loan, which is the median house price in Australia, would add $156 to monthly mortgage repayments.
Since May 2022 – after interest rates started rising from the historically low 0.10 per cent – repayments on a $750,000 loan will increase by an extra $1500 a month if the central bank hikes the rate today.
The RBA will hand down its decision at 2.30pm.
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