On Tuesday, the Australian Central Bank raised its benchmark interest rate for the third straight month and changed its cash rate from 0.85% to 1.35%.
The Reserve Bank of Australia's 0.5 percentage point rise was on par with the June rise.
When banks raised interest rates by a quarter percentage point at the May monthly board meeting, it was the first rate hike in more than 11 years.
Widely expected increases at board meetings in June and July. Reserve Bank Governor Phillip Law said in May that it was "not unreasonable" to expect the cash rate to rise to 2.5%.
Rowe said on Tuesday that Australia's inflation rate is high, though not as high as in many other countries.
"Most of Australia's rise in inflation is due to global factors, but domestic factors are also having an impact," Rowe said in a statement.
"Strong demand, tight labor markets and capacity constraints in some sectors have contributed to upward pressure on prices," he said, and recent floods have also affected some prices. He added that he was exerting.
The Reserve Bank adjusts interest rates to keep inflation within the 2% to 3% target range.
The latest official inflation data is for the March quarter, when the annual rate rose to 5.1%.
This was the highest annual rate since 2001 when the newly introduced 10% federal sales tax caused a temporary surge.
Inflation in the March quarter was significantly higher than the 3.5% annual rate reported three months ago. This rise was due to soaring fuel and housing costs last year and flood damage to crops.
Floods in and aroundSydneyafter Saturday could further damage crops in the region and raise prices for some fruits and vegetables ..
Rowe predicts last month that inflation will peak at 7% later this year.
Prior to the bank's announcement, Finance Minister Jim Chalmers expected a rate hike and admitted that it would cause financial distress to many.
"The expected rise in interest rates does not mean that they will be less than that. For many families and many homeowners, they are already growing. You'll have to find more in your household to serve your mortgage, "Chalmers said on Tuesday.
"Many people are already incredibly tough with the soaring costs of groceries, petrol, electricity and other necessities, which has led to manyAustralians { Life at 36} will be even more difficult, "Chalmers added.
