Economists point to interest rate rise

Those coming to the end of their credit card's interest free period might be affected if the national rate goes up.

Savings account and credit card customers may be affected should the Reserve Bank's rate increase this week.

According to a summary of the current situation by the AAP, economists believe the base rate will be bumped up for the third time in as many months.

Citing recently-conducted research, the news agency said 13 of 14 experts surveyed believe the cash rate will rise to 3.75 per cent tomorrow (December 1st).

This 25-basis point move, said 4cast Financial Markets economist Michael Turner, could be nixed due to recent volatility in the market, which may "stay the central bank's hand".

Royal Bank of Scotland chief economist Kieran Davies also commented on the issue, suggesting the Reserve Bank will hike rates "and then they will take their usual break in January".

"The average homeowner can absorb the initial hikes because they are still paying off their home loans at a pace consistent with where interest rates were late in '08 or early '09," he added.

Currently, the 3.5 per cent policy interest rate sits beside the inflation rate of 1.3 per cent.

By Joe Letts