Interest rates set to rise: what does that mean for you?

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[upbeat music] Main engine start- ...

Peter Martin· Host0:08

I remember the day so clearly.

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Three, two, one. [rocket roaring] Liftoff!

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Obviously, a major malfunction.

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I ran outside as fast as I could and looked up in the sky.

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[rocket roaring] Couldn't believe it, it had exploded. [upbeat music] I'm science reporter Fiona Pepper. And I'm Dr Karl. We're going to tell you the story of Challenger. Challenger Legacy. Search for science fiction wherever you get your podcasts- Or on the ABC Listen Up. What if, as now looks certain, the Reserve Bank starts increasing interest rates next Tuesday after a year of successive cuts? That first initial hike would cost a typical borrower on a $600,000 mortgage an extra $90 a month. The next, another 90. If there are three, the cost would climb to $270 a month. Over an entire year, an extra 3,200. It'd force some of us to tighten our belts, which would be what the Reserve Bank was trying to achieve, and there's no telling where it would stop. With this week's shocking inflation update showing prices climbing at an annual rate of 3.8%, Australia looks set to become one of the first countries in the world to lift rates in an