Mortgage rate is heading to touch such a disappointing double digit figures. Market experts have warned that the interest rate of the country may touch 10% by this year.

This has been predicted as the Reserve Bank is too increasing rates to prevent the hike in inflation. Economists have informed that the nation is under serious threat of the inflation issues.

The price of the commodities have gone up and at the same time rapidly rising employment have created pressure on the RBA while dealing with such matters.

Moreover, the cash rate has been forecasted to hit 7.25% by the year 2012 if the economy continues to perform so strongly.

This has been reported by the economists at the Commonwealth Bank's investment arm Macquarie Bank and Commerce.

Chief economist at Citibank, Josh Williamson has anticipated that the bank margin would creep up to almost 2.90% above the cash rate.

The banks in UK also have expanded their profit margins during the financial crisis. Macquarie's interest rate strategist, Rory Robertson has said that the cash rate will hit a new high if the economy will grow.