RBA Holds Rates at 4.35%, Hints at Possible Future Hike

Australia's stock market saw a rise after the Reserve Bank of Australia (RBA) decided to hold its policy rate at 4.35%, despite warning that it could hike again if inflation doesn't cool down.

The RBA stated that it will continue to take necessary actions to get price growth back into its 2%-to-3% target range, even if that means another increase.

Markets took this decision as slightly less hawkish than feared, with interest-rate swaps pricing an 86.4% chance of no change in September (up from 83.3% before the decision) and cutting the implied odds of a November hike to 31.5% from 37.2%

This shift in market sentiment helped explain the split reaction, with miners and energy firms leading gains while bank stocks lagged behind.