Some money managers appear unconvinced that the Reserve Bank has finished raising interest rates, even as market expectations for a cash rate increase by August slide following the central bank’s decision to keep them on hold this month.

RBA governor Michele Bullock said on Tuesday that she was watching for higher than expected inflation, but kept the cash rate at a 12-year high of 4.35 per cent. The central bank’s policy statement was more dovish than many in the market expected.