SOUTHERN Grampians Livestock and Real Estate said it remained positive about the local property market despite the decision by the Reserve Bank of Australia (RBA) Board on Tuesday to increase the cash rate target by 50 basis points.

Announced at precisely 2.30pm following its monthly board meeting, the RBA Board raised the official cash rate from 1.85 per cent to 2.25 per cent.

The rate rise took effect the following day, however, remains at the discretion of the banks whether to pass the rate rise on to their customers.

Southern Grampians Livestock and Real Estate agent, Bridget Fry, said “we are still feeling quite insulated in this community in respect of the property market, compared with what we are seeing elsewhere, particularly in Melbourne”.

“We haven’t seen a price shift in the market at this stage,” she said.

In a statement released on Tuesday by the RBA, Governor Philip Lowe said the RBA was committed to returning the inflation rate to around 2 - 3 per cent and is endeavouring to do this by keeping the economy on an “even keel”.

Mr Lowe said it was especially challenging navigating a path to economic certainty due to international pressures, high inflation levels around the globe, combined with the tightening of monetary policy in most countries, Russia’s invasion of Ukraine, COVID-19 measures and other issues relating to China.

Australian household spending tendencies are also impacting the leverage that an increase to the official cash rate might offer.

Higher inflation combined with higher interest rates adds to the pressure on household budgets, however, the full effects of higher interest rates increasing mortgage payments is yet to be fully realised in the economy.

The present inflation rate is sitting at 6.1 per cent.