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The increase took the official cash rate to 5.5percentt.
The association said the cash rate was only one component in setting the interest rate.
The cash rate remained at 2% for a sixth straight month following its October decision.
The RBA's decision to keep the cash rate at 1.5% was not a shock.
The increase Tuesday, which took the key cash rate to 3.75percentt, had been widely expected.
The cash rate is now at its lowest level in almost 30 years.
The decision is the official cash rate will remain on hold.
Few economists had expected Australia to raise its main cash rate to 4.75 percent.
The Reserve Bank has left the cash rate at a record low of 2% for the 10th straight month The cash rate has been on hold since May, when the RBA cut the interest rate by 25 basis points.
The Australian central bank reduced a key rate, cutting the overnight cash rate to 5.75percentt from 6.25percentt.
Given there is no expectation that the cash rate will be raised, any adjustment will be to cut the rates.
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