Reserve Bank hikes cash rate to 0.85 per cent

The Reserve Bank has hiked interest rates for the second time in as many months.

The Reserve Bank has lifted the official cash rate from 0.35 per cent to 0.85 per cent in a bid to curb rising inflation.

In a statement released after the bank’s monthly board meeting on Tuesday, Reserve Bank governor Philip Lowe said the RBA had chosen to lift rates by 50 basis points to 0.85 per cent – a bigger rise than had been expected.