The Reserve bank has raised its interest rate target by another 25 basis points.

This is the third time, in just three months, that it has taken action of this kind.

It has never ordered three successive rises like this in the past.

However the bank’s Governor Glenn Stevens the global economy had “resumed growth.”

“With economic policies remaining expansionary, growth is likely to continue next year,” Mr Stevens added.

He admitted, though, that this growth would “probably be modest.”

Mr Stevens said credit for housing is expanding at a solid pace.

“….and dwelling prices have increased significantly this year,” he added.

Mr Stevens said now that the risk of a serious economic contraction had passed, his board had decided, at its past three meetings, to gradually reduce the degree of monetary stimulus in the Australian economy.