Homeowners hoping the Reserve Bank would continue to deliver one rate cut after another have been dealt a brutal wake-up call, with experts warning a 2026 rate hike is no longer a remote possibility.

Newly published inflation figures appear to have squashed earlier optimism of a Melbourne Cup Day rate cut next week and economists are reporting the prospect of cheaper mortgages is looking weaker.

Figures from the Australian Bureau of Statistics released Wednesday showed annual inflation was above expectations at 3 per cent – largely due to soaring electricity prices reigniting cost pressures in the economy.

Commonwealth Bank has now revealed it expects no more rate cuts in the foreseeable future. Westpac’s forecasts are under review.

NAB had already pushed back its forecast timing for t

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