SYDNEY, April 4 Reuters Australia39;s central bank on Tuesday left its cash rate unchanged at 3.6 to break a run of 10 straight hikes, saying it wanted additional time to assess the impact of past increases as the economy slows and inflation has peaked.

Wrapping up its April policy meeting, the Reserve Bank of Australia RBA did warn that some further tightening of monetary policy may well be needed to ensure that inflation returns to target.

Markets had been wagering on a pause, while analysts were split on whether the bank would hike again given the still high level of inflation. ,

Investors reacted by pushing the Australian dollar 0.4 lower to 0.6758. Threeyear bond futures were up 9 ticks to 97.14, with futures now also leaning towards a pause in May, implying hikes are essentially over.

The decision to hold interest rates steady this month provides the Board with more time to assess the state of the economy and the outlook, in an environment of considerable uncertainty, said governor Philip Lowe.

The Board recognises that monetary policy operates with a lag and that the full effect of this substantial increase in interest rates is yet to be felt.

Gareth Aird, economist at Commonwealth Bank of Australia, said the change in forward guidance, compared with the previous stance that further tightening of monetary policy will be needed, indicated that the board is less convinced that they would hike rates again.

To be clear, the Board has still retained a hiking…