RBA Holds Key Rate, Willing to Tighten Further If Needed (3)

Australia’s central bank kept open the possibility of further policy tightening on Tuesday after leaving its key interest rate unchanged, as Governor Michele Bullockargued that inflation could still go either way.

The Reserve Bank’s nine-member board unanimously held the cash rate at 4.35%, its first pause of the year, in response to signs that a trio of hikes are beginning to weigh on the economy.

Bullock told reporters that a weakening housing market suggested the board was on the right track, adding that it didn’t consider the case for a rate increase at the June 15-16 meeting,

“You’ve got ...