SYDNEY, Aug 2 ― Australia's central bank raised interest rates by another 50 basis points today while pledging to "do what is necessary” to bring soaring inflation under control.

The Reserve Bank of Australia's fourth successive increase saw its central rate rise to 1.85 per cent, and officials put borrowers on notice of more.

Governor Philip Lowe said inflation ― already at the highest level in decades ― was expected to reach 7.75 per cent this year, and may take two-three years to bring back to stable levels.

The bank, like others around the world, faces a difficult balancing act in trying to curb consumer prices without stalling the already slowing economy.

"The path to achieve this balance is a narrow one and clouded in uncertainty, not least because of global developments,” said Lowe. ― AFP