The move was widely anticipated, with all of the big four banks correctly predicting a 25 basis point increase to the cash rate at today's meeting.
It comes after a shock inflation read of 5.4% on an annualised basis last fortnight, which was higher than many experts had predicted.
Ms Bullock has previously insisted the central bank would not hesitate to hike rates if inflation continued to rise beyond the target range of 2-3%.
In the central bank's official statement, Ms Bullock cited inflation as the reason behind the rate hike.
"Inflation in Australia has passed its peak but is still too high and is proving more persistent than expected a few months ago," she said.
"The latest reading on CPI inflation indicates that while goods price inflation has eased further, the prices of many services are continuing to rise briskly. While the central forecast is for CPI inflation to continue to decline, progress looks to be slower than earlier expected. CPI inflation is now expected to be around 3½ per cent by the end of 2024 and at the top of the target range of 2 to 3 per cent by the end of 2025.
"The Board judged an increase in interest rates was warranted today to be more assured that inflation would return to target in a reasonable timeframe."
The Board remains adamant that if inflation continues to rise, further rate hikes could be on the cards.
"The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that outcome."
More to come...