The Reserve Bank of Australia has lifted interest rates for an eighth consecutive month, to a 10-year high.

The board decided to increase the cash rate target by 25 basis points to 3.10 per cent.

Finance reporter Evan Lucas told Sofie Formica the RBA is facing some tough choices as it seeks to return balance to the economy.

Press PLAY below to hear about the conundrum now on the board’s hands 

If the banks pass the RBA’s increase on in full, it means the cumulative lift on a $750,000 mortgage has so far added $1418 to monthly mortgage repayments.

RBA governor Philip Lowe flagged future interest rate hikes, saying “a further increase in inflation is expected over the months ahead”.

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