According to a near unanimous opinion expressed by economists in a Bloomberg survey, the reserve Bank of Australia (RBA) is likely to raise its benchmark interest rate by almost 25 basis points for the third month in a row.

In addition, futures trades have also expressed a 76 percent chance of the RBA governor, Glenn Stevens, increasing the overnight cash rate target to 3.75 percent; thereby further aggravating the problems for Australian borrowers.

With the expected a quarter-percentage-point increase in the bank rates, the monthly repayments for mortgage holders will also increase, given the fact that commercial banks mostly tend to go with the RBA's decision.

As per the economists, the projected interest rate raise by RBA is largely based on evidence that the country's economy is strengthening and has entered a "new upswing" that will last for many years to come.

In an earlier statement, Stevens had said that the RBA's "gradual" increases in interest rates will "work to increase the sustainability of growth in economic activity."

Noting that the economists are "tipping a rate hike," but are not too certain about it, Craig James, a senior economist at Commonwealth Bank of Australia, said: "Cash rates remain at historically low levels and our economy is continuing to improve. But on the other side of the equation, a slump in manufacturing investment would be weighing on board members' minds."