The benchmark S&P/ASX200 index closed on Wednesday up 11.2 points, or 0.14 per cent, at 7,804.5, while the broader All Ordinaries rose 11.2 points, or 0.14 per cent, to 8,076.7.
Westpac chief economist Luci Ellis, a former Reserve Bank assistant governor, said she expected her former employer to keep rates on hold until late this year after analysing statements by RBA governor Michele Bullock at Tuesday's meeting.
"While a rate hike is still on the table, we don't think it will come to that and the board and governor have made it clear they hope it won't come to that," Ms Ellis said.
"It really comes down to whether inflation continues to surprise to the upside, or whether it continues to track down, as we expect."
Seven of the ASX's 11 sectors finished higher on Wednesday, with materials and consumer discretionary down slightly and energy and consumer staples basically flat.
Industrials was the biggest mover, up 0.7 per cent.
The biggest story of the day was Perpetual Group agreeing to sell its wealth management and corporate trust business - as well as its name - to Kohlberg Kravis Roberts & Co for $2.2 billion.
The divestment would leave Perpetual as a pure-play global asset manager, which chairman Tony D'Alosio indicated would make the firm easier for the market to value.
"As a standalone business, it will be leaner, more agile and fully focused on enabling our highly respected investment professionals to continue to deliver strong returns to clients, whilst presenting long-term growth opportunities for our shareholders," said chief executive and managing director Rob Adams, who plans to retire after the deal is completed.
Perpetual Group, which must rebrand to a new name by the end of 2025, saw its shares rise 7.1 per cent to $22.32, while rival Pinnacle Investment Management climbed 6.7 per cent to $12.62.
Elsewhere in the financial sector, the big four banks were mixed, with ANZ rising 1.2 per cent to $29.12 and CBA up 0.6 per cent to $119.74, while Westpac remained unchanged at $27.89 and NAB fell 0.5 per cent to $33.96.
In the heavyweight mining sector, BHP dipped 0.1 per cent to $43.38, Rio Tinto fell 1.2 per cent to $130.20 and Fortescue dropped 0.5 per cent to $26.64.
In the health care sector, Polynovo climbed 8.0 per cent to $2.29 after the wound care company announced it had its best-ever month in April, with monthly revenue topping $A10 million for the first time.
"It's hard to contain my excitement when I see first-time orders into Turkey, Abu Dhabi and Ukraine as I think of the lives we are saving," chairman David Williams said.
AUB Group was up 1.8 per cent after the insurance broker network announced its full-year net profit would be at the top end of previous guidance of $161 million to $171 million.
Oil and gas company Santos gained 1.1 per cent and fellow fuel producer Yancoal added 1.6 per cent after the European Union proposed a new package of sanctions on Russian LNG projects.
The Australian dollar was buying 65.78 US cents, from 65.91 at Tuesday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Tuesday up 11.2 points, or 0.14 per cent, at 7,804.5
* The broader All Ordinaries rose 11.2 points, or 0.14 per cent, to 8,076.7
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 65.78 US cents, from 65.91 US cents at Monday's ASX close
* 102.07 Japanese yen, from 101.88 Japanese yen
* 61.23 Euro cents, from 61.27 Euro cents
* 52.68 British pence, from 52.55 pence
* 109.79 NZ cents, from 109.81 NZ cents.
