Further rate hikes to come, says RBA

The Reserve Bank of Australia has signalled its intention to raise rates.

Economic growth is strong and the risk of inflation remaining high was "considerable", the central bank said. "Absent a further shift in economic risks to the downside, monetary policy is likely to need to be tighter in the period ahead."

Higher global commodity prices had boosted incomes and domestic spending. Demand was still growing strongly and productive capacity appeared stretched as a result, the central bank said