The RBA decided to keep interest rates on hold for the second time in a row.

The RBA appears to be very close to the interest rate peak, especially as it now expects inflation to return to target within its forecast horizon. 

Of course, whether another rate hike will follow in the coming months will depend crucially on data developments, especially wage growth and service sector inflation. However, we see today's decision as a clear signal that the RBA is taking a wait-and-see approach for the time being.