Australia's central bank sharply increases interest rates in hawkish surprise

"Given the current inflation pressures in the economy, and the still very low level of interest rates, the Board decided to move by 50 basis points today," said Philip Lowe, governor of the Reserve Bank of Australia (RBA)
in a statement.

Australia's central bank on Tuesday raised interest rates by the most in 22 years and flagged more tightening to come as it battles to restrain surging inflation, stunning markets and sending bond yields flying.

Wrapping up its June policy meeting, the Reserve Bank of Australia (RBA) lifted its cash rate by 50 basis points to 0.85%, wrong footing investors who had wagered on a move of either 25 or 40 basis points.