The Reserve Bank of Australia (RBA) is anticipated to announce a cash rate increase to 4.6% this Tuesday, marking a rise from the current 4.35%. This adjustment would represent the fifth rate hike this year. Financial markets are currently pricing in a 60% probability of further tightening, with several analysts predicting additional increases following the upcoming Melbourne Cup day.

Experts caution that these consecutive rate hikes could have a "devastating" effect on the property market. While higher interest rates typically exert downward pressure on property prices, analysts argue that this will not necessarily improve housing affordability. Instead, the increased cost of borrowing is expected to outweigh the benefits of lower home prices, leaving prospective buyers in a difficult financial position. For a standard $700,000 mortgage, a rate hike of this magnitude is estimated to add approximately $100 to monthly interest repayments. The central bank's decision remains a focal point for both homeowners and market observers as they weigh the necessity of curbing inflation against the risk of cooling the housing sector too aggressively.