Bendigo & Adelaide Bank has joined the chorus of banks predicting an interest rate rise before the end of 2022, but expects property prices to continue rising.

Managing director Marnie Baker predicts there will be further rate increases in 2023 and says the property market is well placed to handle the change.

Baker told The Australian that the bank is “very much leveraged to a rising cash rate environment”.

“Rate rises are becoming more likely as the data that’s dropping supports that view, along with the comments that are coming from the Reserve Bank,” she says.

Baker predicts continued property price increases although not at the same levels as in the past couple of years.

“There’s still scope, both in regional and metropolitan areas, for further price increases there,” she says.

In the December half year, Bendigo grew its share of the residential lending market and posted a cash profit of $260.7 million, with income up 2.9% to $873.4 million.