Some of the big four banks have pushed back the forecasts for a rate hike.

Economists from Australian big bank Westpac have pushed their forecast for a rate hike to December 2020, according to a report from Business Insider Australia.

Westpac's prediction followed Reserve Bank of Australia governor Philip Lowe’s statement saying rates will remain at record lows for a longer period of time.

For Westpac chief economist Bill Evans, the central bank’s high standard for cutting rates means it is very unlikely for rates to drop, despite the tightening financial conditions.

Evans noted that the slowdown in credit growth for residential mortgage lending – particularly to housing investors – is a manifestation of the tighter conditions.

With this, he expects the ongoing price falls "to be sustained for at least the remainder of 2018 and 2019, with soggy markets likely prevailing through 2020”.

Economists at Commonwealth Bank of Australia also extended their forecast for a rate hike to November 2019. CBA chief economist Michael Blythe said the housing market is one huge factor affecting RBA's decision.

"The binding constraint in the monetary policy debate is the interaction of high levels of household debt and weak income growth," he said.

The central bank has held the official interest rate hike at 1.5% for two straight years now. The last time the RBA boosted interest rates was in 2010.