The Australian stock market tanked on the news the RBA is keeping official interest rates steady at 2.25%.
Many investors, betting on a further cut in rates, have been pushing the market higher in anticipation.
The S&P ASX 200 fell more than 1% on the news, from a positive 0.25% to negative 0.88%, before regaining some ground.
All the major components of the market are weaker, including the big four major banks, led by the Commonwealth down 0.76% to 91.850.
Among the miners, BHP was down 1.58% to $33.58 and Rio Tinto down 1.48% to $64.63.AMp was weaker by 3.6% to $ 6.40.
The Australian dollar took off at the news, jumping 0.88% to 0.7834 US. Many market economists had expected a further cut in rates which would have brought downward pressure on the dollar.