Tom Elliott says the first interest rates rise in more than a decade is “nothing to panic about” and is in fact good news for many Australians.

The Reserve Bank of Australia lifted the cash rate to 0.35 per cent, up from 0.1 per cent, on Tuesday.

Tom Elliott says it was hardly panic stations for those with a mortgage, given rates remain at historic lows, while it was a “step in the right direction” for pensioners and self-funded retirees with money in super funds and term deposits.

“We need to get away from always thinking about people who have a mortgage, and maybe thinking about people who are in the twilight of their lives and for whom higher interest rates are actually quite a good thing,” he said.

“Honestly, it is not a disaster.”

Press PLAY below to hear Tom Elliott’s reaction