Australian homeowners are bracing for another financial hit, with an overwhelming majority of economists expecting the Reserve Bank to raise interest rates again on Tuesday.

For mortgage holders who thought the worst might finally be behind them, Tuesday could bring another painful reality check.

A new Finder survey of 41 economists and experts found 90 per cent expect the Reserve Bank of Australia to lift the cash rate by 25 basis points, taking it from 4.35 per cent to 4.60 per cent.

And the pain may not end there.

Almost half of those surveyed expect at least one further increase before the end of 2026, with November emerging as the most likely timing.

What another rise could cost you

For a household carrying the average Australian home loan of $736,259, Finder estimates a rise to 4.60 per cent would leave repayments about $427 a month higher than they were at the beginning of 2026.

That is an additional $5,124 a year.

Should rates rise twice more before Christmas, Finder estimates the same borrower could enter 2027 paying $542 more each month than they were 12 months earlier.

Finder home loans expert Richard Whitten said borrowers had enjoyed only a brief reprieve.

“Another hike would take the cash rate to its highest level in over a decade, and for a lot of borrowers who are already stretched, this one will really hurt,” he said.

The RBA has already lifted rates three times in 2026, in February, March and May, before leaving the cash rate unchanged at 4.35 per cent in June and August.

Why another rise is on the table

Inflation remains the central problem.

Of the Finder experts surveyed, 33 of 41 pointed to stubborn inflation as a major factor likely to influence the RBA’s decision.

The Reserve Bank itself has warned inflation remains too high, with global energy costs and domestic price pressures complicating its efforts to return inflation sustainably to its 2–3 per cent target.

AMP chief economist Shane Oliver said the RBA also faced a question of credibility if inflation remained above target for too long.

But there is disagreement over whether another rate rise will solve the problem.

Adjunct Professor Noel Whittaker expects the RBA to lift rates but questioned how effective another increase would be, arguing mortgage holders would bear much of the cost while some of the inflationary pressure was being generated globally.

A difficult balancing act

The RBA’s challenge is becoming increasingly uncomfortable.

Higher interest rates can suppress spending and demand, helping to contain inflation. But they also increase repayments for borrowers and can further weaken economic activity and employment.

Four of the 41 Finder experts expect the RBA to hold rates on Tuesday.

UNSW economist Evgenia Dechter said the decision was difficult because economic growth was weak and unemployment was rising, leaving the RBA to weigh persistent inflation against the risk of slowing the economy too sharply.

For homeowners, however, the immediate question is much simpler.

After three rate rises already this year, Tuesday could determine whether Australian borrowers head into the final months of 2026 facing yet another squeeze on the household budget.

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