Australia's central bank raised its main cash rate for a second straight month on Tuesday, saying higher borrowing costs were needed to contain inflation, though a very tight vote suggested further tightening would be a close call.

Wrapping up its March policy meeting, the Reserve Bank of Australia $(RBA)$ hiked rates by 25 basis points to 4.10%, a 10-month high and undoing two of the three cuts it made last year. Five board members voted for the increase, while four voted against in the closest decision since they started revealing the voting.

Markets have been wagering on a hike after top RBA officials warned the meeting would be "live" given core inflation of 3.4% was holding stubbornly above the central bank's target range of 2% to 3%.