The incident took place at around 2pm local time (3am GMT) outside the busy Bourke St Mall. The injured include a baby whose pram was hit by the marauding vehicle and a young child has died. 

Police say the incident is not thought to be terror-related but may be related to an earlier incident in the city in which a man (thought to be the perpetrators brother) was stabbed and a woman was taken hostage..

The vehicle was brought to halt after police rammed the car and shot the driver in the arm.