Mortgage holders tipped to be hit with Cup day rate rise

Mortgage holders and business are bracing for another interest rate rise.

The Reserve Bank of Australia is tipped to increase the cash rate on Melbourne Cup day, which would be the 13th rise since May last year.

“(The RBA) just need to do a bit more in all likelihood to get inflation down,” HSBC Chief Economist Paul Bloxham told 3AW Breakfast.

Click PLAY to hear why the RBA is tipped to hike interest rates on Tuesday afternoon