<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The pain for homeowners still reeling from a </span><a href="https://www.9news.com.au/finance/rba-interest-rates-live-updates-may-2026-decision-latest-news-headlines/712337f5-b510-4280-9a17-a45d7826e847" rel="" target="_blank" title="third straight"><span>third straight</span></a><span> </span><a href="https://www.9news.com.au/interest-rates" rel="" target="_blank" title="interest rate"><span>interest rate</span></a><span> hike won't end here, an economist has warned.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Tuesday's decision from the </span><a href="https://www.9news.com.au/reserve-bank-of-australia" rel="" target="_blank" title="Reserve Bank of Australia"><span>Reserve Bank of Australia</span></a><span> to raise the cash rate by 25 basis points to 4.25 per cent was the third hike this year, all but erasing the cuts that </span><a href="https://www.9news.com.au/australia" rel="" target="" title="Australia"><span>Australia</span></a><span> welcomed last year. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Bendigo Bank head of economic research David Robertson blamed the </span><a href="https://www.9news.com.au/israel-iran-conflict" rel="" target="_blank" title="Middle East conflict"><span>Middle East conflict</span></a><span> for another rate hike being all but inevitable, while warning it might even come faster than expected.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>LIVE UPDATES:</span></strong><span> </span><a href="https://www.9news.com.au/world/us-israel-iran-war-live-updates-may-7-donald-trump-latest-world-news-headlines/9dd6d311-7b77-4efc-942d-cda690dd3921" rel="" target="_blank" title=""><strong><span>'Epic Fury an epic fail': Trump cops humiliating broadside</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Albeit at a faster pace than originally forecast, we can expect another hike to 4.6 per cent later in the year," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"While this is a remarkable U-turn from just six months ago, rising inflation has clearly been exacerbated by the </span><a href="https://www.9news.com.au/middle-east" rel="" target="_blank" title="Middle East"><span>Middle East</span></a><span> war, which is compounding pressures that had already emerged ahead of the historic disruption to the global oil supply."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Robertson said general economic forecasts were not completely obsolete – predicting recovery at the back end of this year and start of next year – but admitted it hinged strongly on how the situation in the Middle East played out.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/interest-rates-australia-economist-grim-prediction/20e8a875-68d9-4b9e-aae1-df20465b6492" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Australia remains entirely at the mercy of the duration of the Middle East conflict, which remains uncertain, with a range of scenarios being contemplated," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>NATIONAL:</span></strong><span> </span><a href="https://www.9news.com.au/national/isis-brides-return-australia/ae0c5676-c9ec-46e2-9d27-dfce7e46db01" rel="" target="_blank" title=""><strong><span>Kids deserve 'second chance' senator says as ISIS-linked cohort returns</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Financial markets are still assuming a quick resolution, but the number of ships getting through the Strait of Hormuz is yet to increase.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Attempts by US forces to escort ships through the Strait have been mixed, with the best benchmark of success being the price of oil, which is still expected to peak in the short term."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>He said Treasurer Jim Chalmers faced a daunting task as he prepared to hand down the </span><a href="https://www.9news.com.au/national/federal-budget-2026-what-to-expect-signficant-changes-announcements-explainer/94106a49-6102-447d-bb6a-53aabc1d4a5f" rel="" target="_blank" title="federal budget"><span>federal budget</span></a><span> next week.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The government faces the task of supporting Australian households without adding to inflation, while simultaneously needing to improve productivity in our economy, all in a fiscally responsible manner," Robertson said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"This will be quite the challenge."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><em><strong><span>NEVER MISS A STORY:</span></strong></em><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><p><em><strong><span>Download the 9NEWS App here via</span></strong></em><span> </span><a 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