Paul Bloxham: HSBC chief economist on the Reserve Bank of Australia holding rates at 3.85 percent - Heather du Plessis-Allan Drive

The Reserve Bank of Australia has defied market expectations by leaving its cash rate target unchanged at 3.85 percent.

Market expectations were for the central bank to cut its rate by 25 basis points.

HSBC chief economist Paul Bloxham this came as a surprise to experts - but the central bank opted to wait ahead of the CPI release.

LISTEN ABOVE

See omnystudio.com/listener for privacy information.