The Reserve Bank has lifted the official cash rate by 25 basis points to 2.60 per cent.
In a statement Governor Philip Lowe said the central bank is “committed” to bringing down inflation to its target of 2 – 3 per cent.
“The Board is committed to returning inflation to the 2–3 per cent range over time,” he said.
“Today’s increase in interest rates will help achieve this goal and further increases are likely to be required over the period ahead.
“The cash rate has been increased substantially in a short period of time. Reflecting this, the Board decided to increase the cash rate by 25 basis points this month as it assesses the outlook for inflation and economic growth in Australia.”