The Reserve Bank of Australia (RBA) has lifted the official cash rate by 25 basis points - to 2.6 per cent.
It's the sixth consecutive month the central bank has lifted the rate in a bid to manage rising inflation.
Treasurer Jim Chalmers says more rises are expected in coming months.
"Today we saw another increase in interest rates by the independent Reserve Bank. 25 basis points to take the cash rate to 2.6 per cent. Now, just because this is a bit less than many people were anticipating and just because it is consistent with what we are seeing around the world, won't make it that much easier for Australians to find room in their household budgets to meet the increasing cost of servicing the mortgage. Ever since interest rates started rising before the election, it was clear from the independent Reserve Bank that they would be a number of interest rate rises. This is now the sixth in as many months and the statement from the Reserve Bank governor today indicates that it is likely that there will be more interest rate rises as well."
The average Australian is paying hundreds of dollars more in mortgage repayments than this time last year and it's only expected to get worse.
The nation's official cash rate sat at a record low of just 0.1 per cent between November 2020 and May this year, when the first of a series of consecutive rises began.
