After more than a decade of decreasing the cash rate, the Reserve Bank of Australia (RBA) is expected to raise it during the next two years. Homeowners and prospective borrowers may be concerned about how high their home loan rates will rise.

The big four banks have all made their cash rate estimates for the next few years. Your home loan rate might reach 6.86% in 2023 for the average owner-occupier paying a variable rate.

“Inflation in Australia has passed its peak, but at 7% is still too high and it will be some time yet before it is back in the target range,” the RBA governor, Philip Lowe, said in a statement. “Given the importance of returning inflation to target within a reasonable timeframe, the board judged that a further increase in interest rates was warranted today.”

Last month, the RBA stated that the most recent employment, inflation, retail trade, and business survey statistics will impact the April cash rate decision.

Data appears to demonstrate that high interest rates are finally having enough of an effect on the economy for the RBA to justify keeping rates unchanged, at least until next month.