Reserve Bank of Australia to hand down July interest rates decision

Mortgage holders are closely watching the Reserve Bank today as it considers a potential 13th interest rate rise in just 15 months.

The majority of the big banks are expecting a further 0.25 per cent to be added to the cash rate.

However, experts are split, with mixed economic news including a weakening economy clouding predictions.

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The cash rate was lifted to 4.1 per cent in June.

For the average Australian mortgage, that rate hike represented an additional $1264 in mortgage repayments since the cash rate was 0.1 per cent in April 2022.

"Inflation in Australia has passed its peak, but at 7 per cent is still too high and it will be some time yet before it is back in the target range," RBA governor Philip Lowe said at the time.

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The RBA is aiming to reduce inflation to two to three per cent.

New data released yesterday from AMP Bank revealed almost seven in 10 mortgage-holders worried they would be unable to continue making payments if rates rose any further.

And half said they were unable to make any more spending cuts in their day-to-day life.

Finance guru Mark Bouris has also predicted another rate rise, based on the low unemployment figure.

RBA deputy governor Michelle Bullock had previously said unemployment would need to rise in order to curb inflation.

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