At its meeting today, RBA decided to raise the cash rate by 25 basis points to 4.5 per cent, effective 5 May 2010.
It was the sixth rate rise in the past eight months, and now sees the interest rate hit its highest level since the end of 2008. However in accompanying statement RBA suggests rates reached average levels:
The Board expects that, as a result of today's decision, rates for most borrowers will be around average levels.
Sharp increase in house prices and increasing inflation had an impact on the RBA board decision. However most economists now expect that the RBA would not be making a change next month.