"While business acknowledges the importance of pulling back inflation expectations and bringing inflation down, the Reserve Bank's decision today to lift interest rates raises the chances that the sought-after soft landing will tip into a downturn in 2024," Innes Willox, Chief Executive of the national employer association Ai Group said today.

"Many households and businesses are already under considerable pressure and this further increase in rates will only intensify these pressures.

"With today's rise in interest rates, it has become even more critical that businesses, employees and governments continue to exercise restraint when setting prices and negotiating wages over the period ahead," Mr Willox said.

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