News: Australia's central bank raises rates by 50 bps in major surprise

SYDNEY, June 7 (Reuters) - Australia's central bank raised its key cash rate by a surprisingly large 50 basis points to 0.85% on Tuesday and signaled yet more tightening would be needed as it battles to restrain surging inflation.

Wrapping up its June policy meeting, the Reserve Bank of Australia (RBA) said that given current inflation pressures and the still very low level of rates, the Board decided to move by 50 basis points.

Markets had been split on whether rates would rise by 25 basis points or 40 basis points.