RBA Decision Looms Over Australian Stocks

Australian stocks were relatively stable ahead of the Reserve Bank of Australia's interest-rate decision. The market is expecting a hold, with traders putting a 96.1% chance on the RBA keeping rates steady and only a 3.9% chance of a hike.

The calm reflects how heavily the outcome is already priced in. Resource stocks were boosted by firmer metals and oil prices, while financials edged lower as investors weighed what the RBA might say about the months ahead.

Even a 'no change' decision can still move prices if the RBA signals it's shifting from 'maybe more hikes' to 'we're done'. This could put pressure on bank shares because the earnings outlook is tied to the path of rates, not a single meeting.