Borrowers are trying to lock in low interest rates in anticipation that the Reserve Bank of Australia will end its low cash rate earlier than the predicted date of 2024.

Officials are waiting for inflation to sustainably reach between two to three per cent before it raises the cash rate – a figure not forecast until 2024.

However annual rate of underlying inflation rose to 2.1 per cent last week – marking the strongest result in the past six years.

Financial markets also expect the RBA to axe it’s yield curve control policy and upgrade its economic forecasts at it’s monthly board meeting today.

St George predicts the cash rate to move in early 2023 – while ANZ expects a rate hike in the years second half.

Sky News Australia discussed the matter with The Motley Fool’s Scott Phillips.

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