Economists have sounded warnings and are predicting more and possibly much bigger interest rate gains to come after the decision released by the Reserve Bank today.

For the sixth consecutive time in a mere 8 months, the RBA ended up pushing rates up by 0.25%, all the while hinting that it is now ready to halt. With the new rise, some $48 months would be added to mortgage repayments on a loan of $300,000 with a term of 25 years. The four major Australia banks have already moved ahead and passed in the rise in full.

The decision shared by the central bank today was mainly influenced by the strength of the mining boom across the country and an inflation rate which has managed to grow bigger than expected. Despite all the sovereign debt woes in the Eurozone, the RBa has been comfortable with pushing the rates up.

Glenn Stevens, the RBA Governor has said that the latest increase has managed to put interest rates for most borrowers back on levels which are average, but many have continued to believe that any pauses in rate rises would be short-lived.

"With the risk of serious economic contraction having passed some time ago, the board has been adjusting the cash rate towards levels that would be consistent with interest rates to borrowers being close to the average experience over the past decade or more", he said.