According to the economists at the investment bank CITI, probably, the Reserve Bank of Australia (RBA) will announce one more elevation in the interest rates, while the households try to cope up with the quick inclinations of the central bank in last few months.

This month, the RBA did not alter the rates and kept them at 4.5%, following its six rate hikes of 150 basis points, or 1.5% points, since October.

CITI hinted three more interest rate inclinations from now to the end of 2010. However, CITI has also predicted it to be just one, by the end of the year.

The expectations for the cash rate by 2011 end have been kept the same at 5.5%, which implies to three hikes in 2011.

CITI, Chief Economist, Paul Brennan said that the gradual monetary policy tightening mirrored the increase in household debt levels and also the rates at the end of the borrowers were back to "normal".

Addressing the press, Mr. Brennan said that lending rate are back to the normal but if the debt service levels for the households are considered, they can be placed at “above average”, as they are supported by the debt rise.

"So we think that the rapid normalization of lending rates will mean the Reserve Bank will pause for longer", he added.