The Reserve Bank of Australia has maintained interest rates at 4.35% for the fourth consecutive meeting.

Inflation forecasts are upgraded in response to rising petrol prices and a strong job market.

Treasurer Jim Chalmers urges a balance between austerity and spending with the federal budget approaching.

Opposition finance spokesperson Jane Hume criticizes the government's economic strategies amid slowing growth.

Financial markets were caught off-guard, having expected rate cuts, but now predict a potential hike followed by cuts by year's end or early next.

The Australian dollar dropped to $0.66 post-announcement, influencing ETFs like EWA, FXA, and FLAU.

Analysts await RBA governor Michele Bullock's insights and the federal budget for further direction on monetary policy and inflation control.