RBA Keeps Hike Option Open Amid Debated Rate Decision

The Reserve Bank of Australia (RBA) left interest rates unchanged in its latest move, but policymakers debated both holding and hiking rates, and another increase remains 'quite possible'.

Rabobank strategist Elwin de Groot reports that the RBA's decision was initially seen as dovish by markets, but Governor Bullock pushed back against this view.

The RBA hopes past tightening will be sufficient to manage inflation, but RaboResearch remains unconvinced and expects one more rate hike later this year.