The Reserve Bank of Australia has lifted interest rates for the second month in a row.

The 0.5% increase is higher than many economists had forecast.

It takes the official cash rate to 0.85%

Press PLAY below to hear Deborah Knight reveal the details

Judo Bank Economic Advisor Warren Hogan told Jim Wilson the new rate is a message to the broader community.

“They sent a very clear message to the broader community that, yes there’s inflation now but were going to make sure that these cost of living pressures are brought under control,” he said.

“People need to be thinking about can they afford a mortgage rate that is another percentage point and a half or two per cent higher than the current one.”

Press PLAY below to hear Warren’s reaction