RBA Holds Interest Rates Steady Amid Inflation Concerns

The Reserve Bank of Australia (RBA) has held interest rates steady for a second consecutive meeting, leaving the cash rate at 4.35 percent.

This decision was widely expected by economists and financial markets following relatively benign inflation figures released in late July.

Falling house prices and lower-than-expected inflation helped convince the RBA's nine-member monetary policy board to leave the benchmark lending rate untouched.

RBA Governor Michele Bullock emphasized that the bank is not ruling out further interest rate hikes if inflation remains above target for an extended period, citing upside risks to inflation from global factors such as the Middle East oil disruption and El Nino.