Australia's Central Bank Holds Rates Steady, Warns Further Hike 'Quite Possible'

3-line summary

• The Reserve Bank of Australia held its cash rate steady at 4.35% for a second straight meeting, saying the economy was slowing as expected but warning it might hike again to control inflation.
• RBA Governor Michele Bullock said she personally thought a further rate increase was 'quite possible,' citing the re-escalation of the Middle East conflict as a new factor in the board's discussion.
• The Australian dollar was flat at $0.7055, while 3-year government bond yields rose 2 basis points to 4.572%; swaps now imply about a 50% chance of a rate hike in November.

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