Westpac predicts interest rates will rise within two days

Australians have been warned interest rates could rise within two days placing more pressure on millions of homeowners with mortgages. 

Economists are mostly convinced the Reserve Bank of Australia could start lifting the cash rate from this week’s monthly board meeting, unable to ignore the biggest rise in annual inflation in more than 20 years.

Financial markets are fully priced for a 0.15 per cent rise in the cash rate to 0.25 per cent on Tuesday, followed by a series of 0.25 per cent hikes in subsequent months.

If correct, it will be the first move in official interest rates since November 2020 and the first increase since November 2010.