Australia Holds Interest Rates Steady Amid Inflation Concerns

Australia's central bank kept interest rates steady at a 12-year high of 4.35%. While wrapping up its June policy meeting, the Reserve Bank of Australia reiterated that further increases have not been ruled out to control inflation, amid a slowing economy and unexpected wage growth deceleration.

Australia's central bank held interest rates steady on Tuesday as expected, while reiterating that it was not ruling out further increases if needed to control inflation.

Wrapping up its June policy meeting, the Reserve Bank of Australia (RBA) kept rates at a 12-year high of 4.35%, where they have been since a hike in November last year.

Markets had wagered heavily on a steady outcome given the economy almost ground to a halt in the first quarter and wage growth had slowed by more than expected.