Further interest rate hikes could ‘devastate’ property market without easing unaffordability

With RBA predicted to lift cash rate for fourth time this year on Tuesday, experts warn a fifth – or even sixth – rise would be ‘overkill’

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Two or even three more Reserve Bank interest rate hikes would be “devastating” for the property market but still leave housing more unaffordable than ever as higher borrowing costs trump lower prices, experts say.

The RBA’s monetary policy board is widely expected on Tuesday afternoon to announce an increase in its cash rate to 4.6%, from 4.35%, in a decision that will add another $100 to the monthly mortgage interest bill on a $700,000 loan.

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