Reserve Bank holds rates steady at 4.35 per cent

Hold decision a surprise after recent indicators suggest economy is cooling

Experts divided on rate outlook, but most predict at least one hike this year

The Reserve Bank of Australia (RBA) has held its fire on interest rates and decided to keep the cash rate target on hold at 4.35 per cent.

The decision was a surprise to many experts, who had predicted the RBA would lift rates by 25 basis points after recent data suggested the economy was cooling.

The RBA's statement said the Board had decided to keep rates on hold "in light of the recent data on economic growth and inflation".

"The Board judged that the current stance of monetary policy was appropriate for the time being," the statement said.

The RBA also said that it would continue to monitor the economy closely and would adjust its policy settings as necessary.

Experts are now divided on the outlook for interest rates, with some predicting that the RBA will hike rates by 25 basis points later this year, while others believe rates will remain on hold until 2024.