Reserve Bank of Australia Governor Philip Lowe has warned further interest rate increases can be expected in coming months to tackle inflation after raising the cash rate for the first time in over a decade.
The RBA raised the cash rate from a record low 0.1 per cent to 0.35 per cent at Tuesday's monthly board meeting, a larger increase than economists had been expecting after last week's strong inflation numbers.
The annual rate of inflation surged to 5.1 per cent and underlying inflation hit 3.7 per cent, well above the RBA's two to three per cent inflation target.
