Australia Surprises With Rate Hike; Currency Jumps Reuters | November 01, 2010 | 11:52 PM EDT Australia's central bank increased its key cash rate by 25 basis points to 4.75 percent on Tuesday, a surprise to many given inflation had moderated and credit growth remained weak. The Reserve Bank of Australia (RBA) made the announcement following its monthly policy meeting. A Reuters poll had shown that analysts were expecting rates to stay steady, with rates only going up in December. Then rise marks RBA's first move since May, when it ended a tightening spree of six rate hikes in seven meetings to normalize policy following the global financial crisis.The RBA raised rates by 150 basis points in six steps between October and May as the economy recovered quicker than anyone expected. The Australian dollar surged on the news, rallying as far as $0.9981, from $0.9885 before therate decision was announced, and on course to test resistance at $1.