SYDNEY, June 16 (Reuters) – Australia’s central bank held its cash rate steady at 4.35% on Tuesday, saying the economy was slowing in the face of tighter financial conditions but warned it might hike the rate again if it was needed to control inflation.
Wrapping up its June policy meeting, the Reserve Bank of Australia (RBA) said inflation was still too high and it would do whatever necessary to bring it down, “including increasing the cash rate target further if required.”
It had already raised rates by 75 basis points since February as it struggled to contain stubborn inflationary pressures in the face of surging energy costs.
Markets had wagered on a steady outcome given softness in recent economic data and a prospective peace deal in the Middle East that had pulled down oil prices. [AU/INT]
(Reporting by Wayne Cole and Stella Qiu; Editing by Tom Hogue)
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