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flag Australian home loan borrowers may face up to three more rate hikes by Christmas, pushing the cash rate to a 18-year high of 4.85% due to rising inflation from Middle East tensions and global hawkish central bank signals.

flag Australian mortgage holders could face up to three more interest rate hikes by Christmas, as markets now expect nearly 75 basis points in increases by year-end, pushing the Reserve Bank’s cash rate to a projected 18-year high of 4.85%. flag This shift follows rising inflation concerns tied to the Middle East conflict, including attacks on liquefied natural gas infrastructure, and hawkish signals from global central banks. flag Earlier in the week, only about two hikes were anticipated, but expectations have risen, with potential increases in May, September, and December if tensions continue. flag Higher energy costs are driving broader inflation, with construction firms reporting widespread price hikes from contractors due to rising fuel expenses, indicating inflation is spreading through the economy.

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