Photo: © 2009  AFP/TORSTEN BLACKWOOD

It is the first time since 1990 that interest rates have been lifted in three consecutive months.

The increase of 25 basis points takes rates to 3.75 percent.

Economists were divided as to whether we would see another rate hike on the back of similar hikes in October and November.

President of the ACTU, Sharan Burrow, says the rate rise could halt emerging signs of an economic recovery and put jobs at risk by increasing borrowing costs for small business.

Businesses are still struggling to hire and the central bank should be cautious about inflicting more financial pressure on families and businesses, she says.

If the banks pass on the increase, it will add an extra $47 to the average $300,000 mortgage.