The Reserve Bank of Australia (RBA) has lifted the official cash rate by 25 basis points.

The cash rate is now 0.35 per cent, up from 0.1 per cent.

It’s the first rate rise since November 2010.

The cash rate increase comes as an attempt to clamp down on skyrocketing inflation, which has reached an annual rate of 5.1 per cent.

In a statement, RBA Governor Philip Lowe warned further cash rate hikes are likely to follow.

“The Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time,” he said. “This will require a further lift in interest rates over the period ahead.”