Until the latest inflation reading, an interest rate hike next month looked like a done deal. Now, the date has probably pushed back a bit.

But, far from rate relief, the RBA is likely this year to inflict some borrowing pain. So, is there anything mortgage holders can do about it? Is it too late to fix your interest rate? Yes – and no.

Fixed rates can be a great way to hedge against future interest rate rises, but only if you act sensibly.Credit: Marija Ercegovac

I asked the researchers at Mozo to analyse fixed rate movements since interest rate expectations began changing from cuts to hikes, back in November.

That month, 17 lenders increased some or all of their fixed rates, in December, 41 lenders followed suit and so far in January, 11 lenders have. This includes all the big four banks with CBA most recently increasing their rates on Thursday.

In other words, interest hikes are happening. Lenders know it. When you look at a long-term interest rate chart, you can see that the mortgage variable rate always moves a bit after the cash rate moves,........

© The Sydney Morning Herald