With monetary policy settings moving toward more normalcy since the pandemic the Reserve Bank of Australia (RBA) governor Philip Lowe has given an interest rate forecast and what may lie ahead for borrowers.

When the official cash rate is hiked, Australian banks and other lenders generally follow suite, raising the interest rates they charge variable rate home loan borrowers. With four cash rate increases this year already, there seems to be further rate increases looming for borrowers.

Based on the latest RBA predictions, the cash rate in Australia is expected to climb to a peak of around 2.5%, with inflation possibly surging to 7% by the end of 2022 and not likely to fall until early in 2023.

Find out how this may affect you. Read more in this Canstar article >>