Australians are being warned to expect more rate rises in the coming months after the Reserve Bank of Australia lifted the cash rate for the first time in a decade.

The big four banks have announced they will pass on the RBA’s 0.25 rate rise.

RateCity Research Director Sally Tindall told Ben Fordham the RBA Governor envisages the normal cash rate would sit around 2.5 per cent.

“That’s still well below the historic average, but to get there it’s not going to be pretty.”

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