Aussie shares finished underwater today, following negative leads from international markets overnight and the RBA's decision to leave interest rates on hold.

The RBA shocked a majority of economists by leaving the official cash rate on hold at 4.25%. Expectations were for a 25 basis point cut.

RBA governor Glenn Stevens said "with growth expected to be close to trend and inflation close to target, the Board judged that the setting of monetary policy was appropriate for the moment."

Mr Stevens also said that while financial market sentiment remains skittish, it generally has improved since the last meeting in December.

The statement by Mr Stevens did offer some hope for a rate cut down the track if demand conditions weaken materially.

Sectors were evenly balanced between winners and losers. Materials were the biggest drag on the market amid mixed commodity prices.

BHP and Rio Tinto were the key factors behind the materials sector drop, losing 0.8% and 1.3% respectively.

The ASX 200 shed 22 points (-0.5%), to settle at 4274.

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Evening Market Analysis: RBA Triggers Afternoon Collapse is a post from: Australian Stock Report Market Pulse Blog