Australia treasurer says full impact of rate rises 'still to be felt'

Australia Treasurer Jim Chalmers said on Tuesday the full impact of rate rises was still to be felt in the country's economy after the Reserve Bank of Australia (RBA) raised rates to a 10-year high to contain soaring inflation.

"We expect the full impact of these rate rises will be felt down the track," Chalmers said during a media briefing after the rate decision.

"The economy is expected to soften next year and growth is expected to slow as a consequence of higher interest rates as well as the downturn in the global economy."

The RBA lifted its cash rate by 25 basis points to 3.1% on Tuesday, the eighth hike in as many months.