With the S&P/ASX 200 Index (ASX: XJO) down 7% over the past month and 15.5% lower than where it started this year, investors have enough to worry about.
But many Australians will return from their October long weekends to a rude shock.
On Tuesday, the board of the Reserve Bank of Australia will meet. Unfortunately, according to comparison website Finder, 97% of experts say the RBA will once again raise its cash rate.
Australians have barely caught their breaths since the last hike, but the RBA is forecast to apply an incredible sixth consecutive month of interest rate increases for consumers and businesses.
"The cash rate is still below the 'neutral' levels," said Metropole Property Strategists director Michael Yardney.
"If the RBA is genuinely keen to stomp on inflation, they must raise rates further."
Another 50 basis point hike expected
Finder's study found the majority of finance experts, 56%, are expecting a 50 basis point increase to the rate on Tuesday.
Finder consumer research head Graham Cooke estimated that from May to now, all the interest rate rises have added almost $8,000 to the annual cost of a typical $500,000 home loan.
"Another 50 basis point hike will push that cost up to near $10,000," he said.
"With one-in-four (26%) Aussie homeowners already struggling to pay their mortgage in September, this could be the rate rise that pushes some borrowers to the limit."
With less money to spend, businesses will see reduced demand for their goods and services.
This could potentially mean a continued downwards spiral for ASX shares.
Cooke said mortgages are not the only point of pressure for Australian households.
"With the fuel excise ending on 30 September, and the cost of groceries, energy and travel prices all skyrocketing, this housing blow will be especially painful for many."
According to loan comparison site Mozo, the last time the RBA made such a long series of rate hikes was between October 2009 to November 2010 in the aftermath of the global financial crisis.
But those increases only came in increments of 25 basis points.
What will happen after Tuesday?
Cooke said that while the majority of economic experts expect the rate hikes to pause in November, RBA would "likely" resume early in the new year.
"Despite a slight softening in August, we'll likely see the inflation rate spike back up."
AMP Ltd (ASX: AMP) chief economist Dr Shane Oliver is expecting a 25 basis point hike on Tuesday, but would not be surprised if it's higher.
"After five rate hikes in a row, the RBA should be slowing the pace of rate hikes to be able to assess the impact of rate hikes to date and allow for monetary policy lags," he said.
"But the risk is high that it will go with another 0.5% hike given the excessive focus on backward-looking inflation and jobs data and the hawkishness evident in other major global central banks. A 0.4% hike would be a nice compromise."
Ord Minnett head of institutional research Malcolm Wood thought the RBA might be done after Tuesday.
"I expect the RBA to pause its tightening cycle in November," he said.
"With fiscal tightening from Chalmers first budget, Europe in recession and the US soon to follow, this should end the tightening cycle."
