Last month, the Reserve Bank lifted rates by 25 basis points – the first rate hike in six months.

While there has been growing speculation that the RBA could lift rates again in December, AMP chief economist Shane Oliver said the board should keep rates on hold until 2011.

“While we don’t see the next rate hike coming until February at the earliest, in a year’s time the cash rate is likely to have increased to around 5.5 per cent, which is likely to prove to be the peak for this cycle,” Mr Oliver said.

All four major banks lifted up to 20 basis points ahead of the Reserve Bank earlier this month.