Economists say a recession is still possible as global conditions remain volatile and Australian households and businesses feel the pain of higher interest rates.
The Reserve Bank on Tuesday lifted the cash rate 25 basis points to 3.35 per cent, the highest level since September 2012 and the ninth rise in a row.
It also warned further rate rises would be needed over the months ahead to ensure inflation dropped from its existing 7.8 per cent to the central bank's target band of two to three per cent.
