RBA Holds Rates Steady, Keeps Hawkish Tone

Australia's central bank held interest rates steady at 4.35% for a second consecutive meeting, signaling that the economy is slowing as expected.

Reserve Bank of Australia Governor Michele Bullock struck a hawkish tone by stating it was 'quite possible' that rates may need to go up again to control inflation, keeping alive the risk of a fourth rate increase this year.

The bank warned that aggregate demand needs to remain subdued to reduce capacity pressures and will do what's necessary to bring inflation back within its 2-3% target band, including raising interest rates further if upside risks materialize.