Australia’s 10-year government bond yield held around 5.1%, remaining near its lowest level since August after the Reserve Bank of Australia’s split decision and less hawkish-than-expected guidance dampened expectations for further interest rate hikes. As widely expected, the central bank raised its cash rate by 25 bps to 4.85%, marking its fifth increase this year and taking borrowing costs to their highest since December 2008. The decision reflected persistent, broad-based inflation driven by elevated fuel and commodity prices, domestic capacity constraints and AI-related demand for technology goods. However, the hike was largely priced in, while the 6-3 vote, with three policymakers favoring no change, and the removal of explicit language on further increases pointed to a possible pause in December. Investors now await Governor Michele Bullock’s press conference in Sydney, where she is expected to provide further clues on the rate outlook.