At its June board meeting on Tuesday, the RBA marked the 12th hike in its tightening cycle, bringing the cash rate to 4.10% - its highest level since April 2012. 
In a statement, RBA governor Philip Lowe said that while inflation in Australia is past its peak, at 7 percent is still too high and it will be some time yet before it is bak within the target range.
"This further increase in interest rates is to provide greater confidence that inflation will return to target within a reasonable timeframe."
"The Board remains alert to the risk that expectations of ongoing high inflation contribute to larger increases in both prices and wages, especially given the limited spare capacity in the economy and the still very low rate of unemployment. Accordingly, it will continue to pay close attention to both the evolution of labour costs and the price-setting behaviour of firms," he said.
Mr Lowe added that some "further tightening" of monetary policy may be needed to ensure inflation returns to target within a reasonable timeframe, but that it will depend on how the economy and inflation evolve.

Likely impacts on the housing market

The Reserve Bank’s decision to lift the cash rate in May did not deter the current home price rebound, in fact it had the opposite result, Ms Creagh said.
Nationally, the PropTrack Home Price Index revealed home prices increased in May, rising 0.33% as the home price rebound gathered pace.
This brought prices up 1.55% from the low point recorded in December 2022.
Meanwhile, home prices in the combined capital cities increased 1.34% in the past three months, the strongest quarterly growth since the December quarter of 2021.
“Stronger housing demand is being fuelled by rebounding net overseas migration, and a tight rental market,” Ms Creagh said.
These factors combined with limited new stock, are concentrating buyer interest and putting a floor under home prices, she said.

Source: REIWA.com and realestate.com