The Reserve Bank has raised interest rates to 3.6% causing more pain for borrowers.

The board has increased the basis points by 25.

There is more to come, this will not be the last, the RBA warned.

The combined ten increases will add around $1500 to the monthly repayment on the average $750,000 home loan.

A statement says global inflation remains very high in headline terms.

Although services price inflation remains elevated in many economies, it will be some time before inflation is back to target rates. The outlook for the global economy remains subdued with below-average growth expected this year.

The board expects further tightening of monetary policy which means increases will be needed to ensure that inflation returns to target.

See more highlights from Deborah Knight below: