RBA keeps rates steady, prepares for hikes later

The Reserve Bank of Australia (RBA) held interest rates steady on Tuesday to assess the impact of previous hikes, and being open for the possibility of future hikes.

The RBA has kept its cash rate at 4.10 percent, an 11-year high, after lifting rates by 400 basis points since May of last year.

“In light of this and the uncertainty surrounding the economic outlook, the Board decided to hold interest rates steady this month, the interest rates are working to establish a more sustainable balance between supply and demand,” said RBA Governor Philip Lowe.

The RBA had previously paused hikes in April but resumed them in May and June, with experts forecasting a hike in August following the second quarter inflation figures due late July.