The Reserve Bank of Australia is tipped to lift the cash rate to 1.35 per cent in July, using back-to-back 0.5 percentage point rate rises in an effort to curb inflation, which the bank says is growing faster than expected.

The RBA blindsided economists on Tuesday when it increased the cash rate from 0.35 per cent to 0.85 per cent, the largest increase in 22 years, and indicated inflation would peak higher than the 6 per cent forecast in May.