Interest rates may rise even more across the Tasman

The Reserve Bank of Australia (RBA) has left the door open for another increase in official interest rates.

The central bank there has just released its quarterly statement on monetary policy.

Financial markets had considered there is a good chance interest rates will go up again before the end of the year.

Today's publication from the RBA will do nothing to dissuade them.

The statement says that even allowing for the effect of this week's rate rise underlying inflation will be around 3 per cent for the next two years.

And in the short-term CPI inflation will stay significantly higher than that.

That represents an upward revision to earlier forecasts and would leave inflation at the very top of the bank's tolerance range.

The Reserve Bank of Australia also says that last month's income tax cuts and growing employment will boost household spending offsetting rising petrol prices.

Meanwhile, a third major Australian bank has increased its mortgage rates following Wednesday's interest rate rise.

The Commonwealth Bank's standard variable rate has risen by a quarter of a per cent to 7.82 per cent.

It follows earlier decisions by the NAB and Westpac to raise their mortgage rates.

- RADIO AUSTRALIA