The largest increase to the minimum wage on record, a rise in inflation, and a rebound in home prices all make an interest rate rise this afternoon an inevitability, economists warn.

The Reserve Bank of Australia was expected to maintain its 3.85 per cent rate last week, with only 9 per cent of economists signalling a 0.25 per cent jump when the Board meets this afternoon.

This figure has moved to 30 per cent, with many forecasting multiple rate hikes.

“Multiple rate hikes now look likely to be delivered before the end of this year. For us, the only open question is when,” said Deutsche Bank economist Phil O’Donaghoe, who expects three further rate rises to bring the peak to 4.6 per cent.

Economists at ANZ, Capital Economics, Goldman Sachs, Nomura and Royal Bank of Canada all raised their peak forecast to 4.35 per cent.

All are expecting a 0.25 per cent jump this afternoon, which will put the cash rate at 4.1 per cent.

“The rebound in home prices could itself spur the RBA to raise interest rates more than it otherwise would have done because rising home prices could drive a positive wealth effect offsetting its efforts to try and slow consumer spending down,” noted AMP chief economist Shane Oliver.