There could be light at the end of the tunnel for those hoping for a reduction in interest rates.

The Reserve Bank has raised the Official Cash Rate by 50 basis points, to 4.75 percent, as it continues to try to rein in inflation.

Similar moves are also being made by central banks around the world.

Independent economist Tony Alexander told Mike Hosking short-term interest rates should be able to ease next year.

“Fixing one year, you can start to ride down the falls in interest rates over 2024, but of course two-year interests rates is probably equally as valid for the majority of people out there as well."

LISTEN ABOVE