Economic Buzz: Australia's central bank keeps rate steady

The Reserve Bank of Australia (RBA) kept its key interest rate unchanged at 4.35% on Tuesday, as expected.

Following three increases in the cash rate target since the beginning of the year, financial conditions are now tighter than they were, and the economy appears to be slowing as expected, the RBA said, noting that inflation is still too high.

With monetary policy judged to be somewhat restrictive, the Board decided to leave the cash rate target unchanged while it assesses how the economy is evolving. The Board will continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if upside risks materialise, it added.

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