For years we’ve heard from older generations that the current interest rate pain is nothing compared to the horror of 17.5 per cent rates in the late ‘80s and early ‘90s.

But now, as the Reserve Bank delivers its fourth hike this year, analysis shows the pain being inflicted on homeowners is comparatively worse.

So, as the official cash rate hits a 15 year high of 4.6 percent – how bad could it get?

Today, KPMG senior economist Terry Rawnsley on the chance of more interest rate hikes, the flow on effects of this latest hit, and whether we should be looking at alternatives like tax hikes, to get inflation under control.

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Guest: KPMG senior economist Terry Rawnsley

Photo: AAP Image/Sarah Wilson