Australian shares reversed course to close higher on Tuesday, boosted by financial stocks, after the country’s central bank held interest rates steady saying it wanted more time to assess the impact of past hikes.

The S&P/ASX 200 index closed 0.5% higher at 7,279 points, their highest close since June 21. The benchmark added 0.6% on Monday.

The Reserve Bank of Australia (RBA) kept its cash rate steady at an 11-year high of 4.10% in its July policy meeting, but reiterated its warning that further tightening might be needed to stamp out inflation.

Mining stocks lead Australian shares higher ahead of cenbank meeting

Investors had been leaning towards a pause in July, but economists were divided on the outcome, with 16 out of 31 polled by Reuters expecting a hike and the rest forecasting the bank to stand pat.

“RBA has fully switched to a data-dependent mode similar to the Fed. Though further hikes can’t be ruled out, it is safe to say most of the heavy lifting has been done now,” said Glenn Yin, head of research and analysis at AETOS Capital Group.

Analysts at Barclays think the RBA is now turning less hawkish and expect one final hike in August. They expect rate cuts to start in the first quarter next year.

Most sub-indexes closed the session in the green, with heavyweight financial stocks gaining 1.1%, their highest close since May 2. The so-called “big four” banks gained over 1%.

Gold stocks climbed 1.9%, with Northern Star Resources and Newcrest Mining Ltd rising 1.6% and 1.2% respectively.

Energy stocks and mining stocks climbed 1.2% and 0.2%, respectively.

ANZ analysts, who expected RBA to raise rates in July, said that a range of factors including second-quarter consumer price inflation, labour market conditions, developments in the consumer sector and the likely path of inflation will guide their views going forward.

New Zealand’s benchmark S&P/NZX 50 index advanced 0.5% to 11,980.33 points.