Hopes of a Melbourne Cup-day rate cut have been dashed as the Reserve Bank of Australia elected to keep the cash rate on hold at 3.6 per cent on Tuesday.

The decision came as little surprise to economists after a surprise surge in inflation figures last week.

Underlying or trimmed mean inflation, which is the RBA’s preferred measure, jumped more than 1 per cent in the September quarter, which was materially higher than the bank’s forecasts.

Over the year to September, consumer prices climbed 3.2 per cent, a big increase from 2.1 per cent in the previous quarter, and above the top end of the central bank’s target.

Expectations for future moves will be influenced by the tone of the RBA board’s statement, governor Michele Bullock’s post-meeting conference and updated economic forecasts wh

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