The Reserve Bank of Australia has lifted the interest rate for the fifth month in a row.

Rates have lifted by 50 basis points, bringing the new cash rate to 2.35 per cent.

The change has brought interest rates to their highest level since December, 2014 as the central bank attempts to quash soaring inflation.

A new official cash rate of 2.35 per cent would see the average homeowner paying about $1000 more each month since rates began rising in May.

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