Reserve Bank governor Michele Bullock has not ruled out hiking interest rates again if inflation keeps rising, after the bank left rates on hold for the first time in 2026.
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 economists were split on whether it heralds the end of the bank's hiking cycle or is merely a pause before the next move upwards.
Amid the opposing challenges of a slowing economy and persistent inflation pressures, economists differed on how much weight to put on each impulse, Ms Bullock said.
Rate rise expectations had come down since lower-than-expected headline inflation and higher-than-expected unemployment figures were released after the previous rate meeting in May.
