Homeowners warned to expect at least two further rate hikes as repayments soar

Economists expect a 50 basis point increase in the cash rate when the Reserve Bank meets on Tuesday, pushing up interest rates to combat inflation. Photograph: Muhammad Farooq/AFP/Getty Images

Homeowners have been warned to brace for a double whammy of interest rate rises on Tuesday and again in August, with total monthly repayments expected to be driven at least $333 higher on the latest predictions.

Markets and economists are tipping a 50 basis point increase when the Reserve Bank meets on Tuesday, lifting the official cash rate from 0.85% to 1.35%, with further rises expected throughout 2022.