One economist says the Reserve Bank has needed to increase the Official Cash Rate for a while. 

It's gone from one to 1.5 percent. 

Infometrics Chief Economist, Gareth Kiernan, welcomes the central bank coming to the party, and realising we don't need interest levels so low. 

He told Kate Hawkesby the housing market's been running rampant and there's been strong household spending. 

Kiernan says that was great when we thought Covid was going to hammer the economy, but that hasn't happened. 

He's been looking at the low unemployment rate and the housing market for the last nine months or so, saying something's got to change. 

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