At its July policy meeting, the Reserve Bank of Australia (RBA) board members decided to leave the Official Cash Rate (OCR) unchanged at 4.10%, dissapointing the markets.

The latest Reuters poll showed there was a near split among economists with 16 of 31 foressing another 25 bps rate hike to 4.35% at the July 4 meeting. The remaining 15 expected a pause.

The Australian central bank raised interest rates by 25 bps in May and June, delivering two consecutive hawkish surprises.