The Housing Industry Association (HIA) in Tasmania has scored the latest Reserve Bank of Australia (RBA) move to increase the official interest rates by 25 basis points, which prompted the country's four major banks to pass on the hike to unsuspecting home buyers.

HIA's Stuart Clues told ABC that the RBA countered the housing affordability recommendation of the Henry Tax Review which called for housing stocks replenishment on the ground and clearly, increasing the rates will run against that idea.

He said that the 4.5 percent hike will prove very insensitive for Tasmanians who will be forced to shell out additional $51 a month if only to repay their existing home loans.

Mr Stuart said that the successive interest rates will only discourage prospective investors who are looking to enter the market and turning them away will "put additional pressure on the rental market."

Industry experts said that the rate hike will most likely put more cost in doing business and Richard Dowling of the Chamber of Commerce and Industry feared that retailers and exporters will incur most of the damage.

He told ABC that as of this time, businesses are experiencing negative profit growth and the level of confidence is obviously not that high, as he added that "it will be difficult for exporters who have to deal in international markets where they are price takers, not price makers."

Mr Dowling said that most of these exporters and retailer will resort in passing the additional costs into their international markets which are already weakened by economic troubles and where there are less consumer dollars of disposable income.

As a direct result, he observed that Tasmania is poised to face more fiscal challenges as the interest rates' effects reverberates on the area's already struggling retail trading industry.

Mr Dowling is optimistic though that the central bank will pause for some months before lifting the rates again since the rates currently in effect are already in the realm of normal levels.