The RBA is set to make a big move, with interest rates expected to hit a 17-year high by the end of the year. Mortgage holders are bracing themselves as the Reserve Bank of Australia (RBA) looks likely to raise rates three more times, taking the cash rate to 4.85%. For the first time since the Global Financial Crisis (GFC), rates will soar to levels not seen since November 2008, and Australians are being warned to prepare for the financial strain.<\/p>\n\n\n\n
The reason behind these looming rate hikes is straightforward\u2014persistent inflation. The RBA has been working hard to control inflation, but it remains higher than the central bank’s targets. To manage this, the RBA is expected to continue hiking rates, even as the economy shows signs of slowing down. But it\u2019s not just domestic issues that are contributing to the inflation problem, explains Yahoo Finance<\/a>.<\/p>\n\n\n\n A key factor driving up prices is the global surge in oil prices. Since the conflict between the US, Israel, and Iran escalated, oil prices have jumped dramatically, from about $US56 per barrel to $US110 per barrel. This increase at the petrol pump is hitting Australian motorists hard, with each $US10 rise in oil prices adding 10 cents to the price of fuel. But the impact doesn\u2019t stop there. The soaring fuel costs are pushing up prices across the economy\u2014especially in food and transport\u2014further squeezing households already struggling with higher living costs.<\/p>\n\n\n\n