Surprise move from the Reserve Bank of Australia

The Reserve Bank of Australia (RBA) surprised markets again by raising interest rates by another 25 basis points. The Reserve Bank of Australia defied market expectations on Tuesday by raising its benchmark interest rate by 25 basis points to 4.1%. Economists had expected the central bank to keep interest rates on hold. The Australian dollar rose 0.73% to 0.6667 against the US dollar shortly after the decision, as the central bank grapples with the latest inflation rate of 7% for the March quarter. Australian stocks fell further, with the S&P/ASX 200 last trading 1.14% lower.