Australia's central bank raises rates by smaller-than-expected 25bps

Australia's central bank raised its cash rate 25 basis points to a nine-year high of 2.60% on Tuesday, a surprise to markets that had wagered on a larger move, though it did leave the door open for further tightening ahead.

Wrapping up its October policy meeting, the Reserve Bank of Australia (RBA) said the cash rate had been increased substantially in a short period of time, so it had decided to slow the pace of moves.

This was the sixth hike since May, lifting rates by a total of 250 basis points.