The RBA board has raised interest rates for the sixth month in a row but this time the jump is lower than had been expected.

Rates have risen by 25 basis points, taking the official interest rate to 2.6 per cent.

Most analysts had predicted rates would rise by another 0.5 per cent.

In its statement, the Reserve Bank says inflation remains a problem and further rate increases are on the cards.

But the RBA says today’s smaller increase will give the board a chance to see how the broader economy is reacting

Economic Advisor to Judo Bank Warren Hogan told Jim Wilson Aussies will have to readjust all spending.

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