Australia central bank holds rates steady

Australia’s central bank on Tuesday held rates steady as expected after a lifting them to a 12-year high last month.

The Reserve Bank of Australia left the cash rate at 4.35% after inflation fell to 4.9% in October.

“Returning inflation to target within a reasonable timeframe remains the board’s priority,” said RBA governor Michele Bullock.

“Whether further tightening of monetary policy is required to ensure that inflation returns to target in a reasonable timeframe will depend upon the data and the evolving assessment of risks.”

“While there have been encouraging signs on goods inflation abroad, services price inflation has remained persistent and the same could occur in Australia,” she said.

“There also remains a high level of uncertainty around the outlook for the Chinese economy and the implications of the conflicts abroad.”

Reporting by Frank Prenesti for Sharecast.com