Finance expert's prediction on RBA inflation

Mark Bouris has predicted Australia likely won't see a reduction in interest rates until at least the middle of next year.

The Yellow Brick Road executive told Today there is a massive amount of tension in the market right now and suggested an increase in GST could be a better alternative to another interest rate increase.

"I'm just going to sound a bit disrespectful, but the RBA need to get off their high horse and start looking at alternatives in order to stop people spending too much," he said.

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"I think, like the US, we have these two competing economies and the US is six months ahead of us, so I think it's going to continue on and I think we are definitely not looking at interest rate reductions until sometime into middle of next year."

Mark said borrowers who are concerned needed to make sure they've got the lowest interest rate in the marketplace and possibly look at changing it from principal interest to interest only for a period of time.

"If you're really struggling, contact your lender and make sure that you ask for a period of relief, like a three month period, etc," he said.

But while things are still looking grey in the long run, Mark said he thinks interest rates will remain on hold for the next month at least.

"Tomorrow the unemployment numbers come out and on July 31, inflation numbers come out, so there's a lot of people betting in the market that there will be an interest rate rise in the beginning of August this year," he said.

"So that is a real worry, but my gut feeling right now and it's not more than my gut feeling, our analysis shows that the Reserve Bank will not put up rates because by putting up rates, they will not control those things, those prices that are increasing and there's no point, no effect."

Watch the full chat with Mark Bouris in the video above

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