The Reserve Bank of Australia has left interest rates on hold for the first time in 2026 as the nation's economy deteriorates and questions linger over a potential peace deal in the Middle East.
Following three consecutive rate rises, the central bank's monetary policy board voted unanimously to leave the cash rate steady at 4.35 per cent on Tuesday.
The decision was anticipated by the majority of economists and financial markets.
But the question now is whether it heralds the end of the bank's hiking cycle or is merely a pause before the next move upwards.
The odds of a rate hike lengthened following softer-than-expected economic growth figures, a jump in the unemployment rate and better-than-forecast inflation figures since the previous rate meeting in May.
