Westpac chief economist Luci Ellis said the RBA's decision to hold rates met expectations but its guidance — "only prepared to raise rates if upside inflation risks materialise", firmer than May's "if necessary" — has effectively lowered market odds of further hikes. Westpac now expects rates to remain on hold through mid‑next year, citing inflation and labour‑market data running below the RBA's May forecasts. The bank describes the move as a "hawkish pause" rather than a loosening; a small chan

Westpac chief economist Luci Ellis said the RBA's decision to hold rates met expectations but its guidance — "only prepared to raise rates if upside inflation risks materialise", firmer than May's "if necessary" — has effectively lowered market odds of further hikes. Westpac now expects rates to remain on hold through mid‑next year, citing inflation and labour‑market data running below the RBA's May forecasts. The bank describes the move as a "hawkish pause" rather than a loosening; a small chance of further hikes this year remains, conditional on energy-related cost pass-through or escalation in the Middle East.