While the Reserve Bank kept kept rates on hold when it met on Tuesday – and, according to most economist, is likely to do so for the next few months – that doesn't mean things will necessarily stay on hold for borrowers.

In recent months, Australia's big four banks, along with a number of smaller lending institutions, have regularly raised rates, particularly for interest-only borrowers, effectively tightening monetary policy despite the central bank's caution. Household debt, new figures show, is at a record high.

According to a UBS analysis, the spread between the RBA's cash rate and the private sector borrowing rate has doubled since 2007, swelling to 350 basis points, taking the interest rate most commonly paid in the economy close to 5 per cent.

The RBA took its cash rate to a record low 1.5 per cent in August 2016. Since then, UBS' economists estimate the average mortgage rate has increased by 25 basis points, or a typical RBA rate hike.