We still have not seen the last of painful interest rate rises this year if the Reserve Bank's latest statement is anything to go by.
After sparing mortgage holders another hike this week, the board said inflation would not start dropping till the middle of 2009.
Sevanth Sebastian from Commsec said that can only mean one thing.
“We do expect that there is a significant boast to our terms of trade from the coal and iron ore exports and the promised tax cuts in the federal budget which will be delivered next Tuesday,” he said.
“We’d also like to nullify the effects of the slowing economy, so another rate hike we believe is on the cards.”