The RBA's Rate Freeze: A Hawkish Pause in a Cooling Economy

The Reserve Bank of Australia kept its cash rate at 4.35% on Tuesday, a decision that surprised no one but rattled markets nonetheless. Governor Michele Bullock's post-meeting press conference delivered a stark message: while the economy is slowing as expected, inflation remains stubbornly high, and the bank is ready to hike again if needed.

"It's important people believe that we will act if we need to. I think personally that it's quite possible we might...