Inflation news yesterday wasn’t good for mortgage rate worriers and here’s why. The inflation news was in yesterday and it wasn’t good for mortgage rate worriers. The key measure the Reserve Bank monitors to assess if a cut or rise is necessary was on the high side, so the expectations of a 0.25% rate rise next Tuesday have heightened among economists. The combined effects of a stronger-than-expected economy with falling unemployment and rising inflation means rate increases are to be expected. Job gains have remained low, and the unemployment rate has shown some signs of stabilization.