RBA interest rates: Reserve Bank of Australia leaves cash rate on hold at 3.85%

RBA interest rates: the Reserve Bank of Australia has kept the official cash rate on hold. Photograph: Joel Carrett/AAP

A divided Reserve Bank of Australia has held rates at 3.85%, in a surprise decision that denies further mortgage relief for millions of households.

The split decision came as a shock to financial markets and a large majority of experts who were sure the RBA board would cut interest rates for a second straight meeting.