Reserve Bank nervous about rate hike lag

An RBA official says more frequent meetings allow it to move faster than overseas central banks. (Dean Lewins/AAP PHOTOS) (AAP)

Fears of a delayed hit from aggressive interest rate hikes outweighed concerns about stubbornly high inflation when the Reserve Bank board made its surprising October cash rate decision

The Reserve Bank of Australia decided to ease back to a 25 basis point interest rate lift despite markets broadly expecting another 50 basis point jump.