Australian borrowers hit again as RBA raises interest rates by 25 basis points to 2.85%

Reserve Bank raises rates for seventh time in attempt to bring inflation under control

Australia's borrowers have been slugged with a record seventh rate rise from the Reserve Bank in as many months, as the central bank tries to quell the nation's strongest burst of inflation in 32 years.

The RBA on Tuesday lifted the cash rate by 25 basis points to 2.85%, the highest since early May 2013. The increase was in line with most economists' expectations.