Updates after RBA rate decision

By Roshan Thomas and Sneha Kumar

April 1 (Reuters) - Australian shares held onto the day's gains after the domestic central bank kept its key cash rate unchanged as widely expected on Tuesday, with traders scooping up beaten-down banking and mining stocks following a sharp decline in the previous session.

The S&P/ASX 200 index .AXJO gained 0.8% to 7,904.90 points as of 0337 GMT, regrouping after a 1.7% decline on Monday.

The Reserve Bank of Australia $(RBA)$ maintained its cash rate steady as expected at 4.10% saying it was still cautious about the outlook, though it dropped an explicit reference to being wary about cutting rates again.

Markets had already priced in a hold at this meeting, while swaps imply a 64% chance of a rate cut next month. 0#AUDIRPR

"I think there's a good chance that we will see at least two rate cuts materialise this year. Whether or not we might get a third rate cut in 2025 depends on how much progress the RBA makes in taming core inflation in coming months," said Tim Waterer, chief market analyst at KCM Trade Global.

Heavyweight miners .AXMM jumped 1.3% after a sharp 3.6% drop on Monday. Sector majors BHP Group BHP.AX, Rio Tinto RIO.AX and Fortescue FMG.AX gained between 1% and more than 2%.

Financials .AXFJ jumped 0.3%, helped by three of the "Big Four" banks.

Gold stocks .AXGD advanced 0.8%, tracking the bullion's record prices as investors flocked to the safe-haven asset amid geopolitical and economic uncertainties. GOL/

Energy stocks .AXEJ also gained more than 1% after oil touched a five-week high on Monday on supply worries. O/R

Meanwhile, Australia's retail sales rose modestly for a second straight month in February, data showed.

New Zealand's benchmark S&P/NZX 50 index .NZ50 lost 0.4% at 12,218.76 points.

The Reserve Bank of New Zealand said its board is preparing a recommendation to appoint a governor for a six-month term.

(Reporting by Roshan Thomas and Sneha Kumar in Bengaluru; Editing by Sherry Jacob-Phillips and Sumana Nandy)

((Sneha.kumar@thomsonreuters.com))

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