In his post-meeting statement, Reserve Bank governor Philip Lowe said the latest rate rise was unlikely to be the last this year.

"The board expects to take further steps in the process of normalising monetary conditions over the months ahead, but it is not on a pre-set path," he said.

"The size and timing of future interest rate increases will be guided by the incoming data and the board's assessment of the outlook for inflation and the labour market.

"The board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time."

Interest rate rises will see property prices fall further as maximum home loan sizes shrink:

Property prices may be dropping but that doesn't mean that wannabe home owners are suddenly celebrating.

Lenders are simultaneously winding back how much people can borrow for mortgages as they factor in higher interest rate repayments and cost of living pressures.

Corey Chamberlain and his partner were just told by their mortgage broker that their borrowing capacity with a smaller lender has dropped by more than 20%.

That's compared with a national property price drop of just 2% in the last three months. 

"I'm gutted, really," Mr Chamberlain said.

The couple with a young child were first approved for a mortgage of around $975,000 in late 2021, and then again when they went back for pre-approval earlier this year. 

That's when Australia's official cash rate was still at 0.1%.

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