RBA Keeps Interest Rates Steady Amid Inflation Concerns

The Reserve Bank of Australia (RBA) has kept interest rates steady for the second consecutive meeting, despite inflation hovering above its target range. The central bank's nine-member monetary policy board left the cash rate at 4.35 percent on Tuesday.

The decision was widely expected by economists and money markets, who had anticipated rates to remain on hold. A softer-than-expected inflation figure in late July killed off expectations of an August rate hike.

The RBA's preferred quarterly trimmed mean measure of inflation came in at 3.6 percent for the June quarter, below its previous forecast of 3.8 percent. However, both headline and underlying inflation remained above the bank's 2-3 percent target range.