Australia's Central Bank Holds Rates, Stays Vigilant on Inflation

AUSTRALIA - SYDNEY. Australia's central bank held interest rates steady on Tuesday, as expected, but reiterated that policy would need to stay restrictive until it was certain core inflation was slowing as desired.

There was subdued market reaction, with the Australian dollar little changed at $0.6590. Rate swaps suggest there is a scant chance of a rate cut this year, with a first easing most likely in April or May next year.