RBA holds rates as it assesses impacts of recent rises

Australia's central bank left rates unchanged for just the second time in 14 policy meetings as it looked to assess the state of the economy.

The Reserve Bank of Australia left the official cash rate at 4.1% - still an 11-year high. Governor Philip Lowe said the bank needed time to assess the impact of recent increases before it moved again amid stubborn inflation.

“The higher interest rates are working to establish a more sustainable balance between supply and demand in the economy and will continue to do so,” Lowe said.

“In light of this, and the uncertainty surrounding the economic outlook, the board decided to hold interest rates steady this month.”

“Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve,” he said. “The board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that.”

Reporting by Frank Prenesti for Sharecast.com