SYDNEY – Australia’s central bank raised its cash rate by a remarkable 25 basis points to 0.35% on Tuesday. It is its first rise in more than a decade.

After wrapping up May’s policy meeting, Reserve Bank of Australia said that it was now the best time to withdraw some of the exceptional monetary support put in place for the economy to combat the pandemic.

An overwhelming majority of analysts polled by Reuters expected a rise of 0.25%, given that inflation had risen to new highs in March quarter (20-year records).