The central bank chose to lift the cash rate target by 25 basis points to 4.10 per cent, surprising the financial markets and the majority of economists who predicted a pause on rate hikes in June.
"Inflation in Australia has passed its peak, but at 7 per cent is still too high and it will be some time yet before it is back in the target range," Lowe said. "The combination of higher interest rates and cost-of-living pressures is leading to a substantial slowing in household spending," he said. "Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve," he said.
"Aussies with an average loan size of $577k will be spending over $15k more per year on their mortgage compared to what they were in April last year.
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