The Reserve Bank of Australia has lifted interest rates for the fourth month in a row.

Rates have lifted by 50 basis points, bringing the new cash rate up to 1.85 per cent.

A few years ago, RBA Governor Philip Lowe claimed interest rates were unlikely to rise until 2024.

Armed with this information, many decided to take out a mortgage at the height of the COVID pandemic.

But as inflation continues to soar, the Reserve has no choice but to lift rates earlier than expected.

Prime Minister Anthony Albanese says he has confidence in the RBA but concedes rate hikes aren’t easy to manage.

“The RBA do have our support, they are an independent authority,” he told Today this morning.

“We recognise that people are doing it really tough and people are worried about increases in their mortgage.

“We are very conscious of the feelings that are out there and every half a per cent or quarter of a per cent in interest rates means higher payments for people and that means they are having to make choices about how they get by.”

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