SYDNEY - Australia's central bank held interest rates unchanged at 5.75 per cent on Wednesday, as expected, though financial markets continue to see a risk of an increase as early as August.
The Australian dollar and debt futures were little changed after the news.
The Reserve Bank of Australia (RBA), which held its July policy-setting meeting on Tuesday, does not comment on its reasoning when leaving interest rates unchanged.
Interest rate futures are fully pricing in a move to 6 per cent by the end of the year, given expectations of rising consumer price inflation combined with solid consumption and a jobless rate at 30-year lows.
The RBA has indicated it was more likely the next move in interest rates would be up, rather than down, but has offered no idea on timing.
Analysts had given only a slim chance of a tightening in policy this month, but see a greater risk of a move in August and after the release of the second-quarter consumer price index on July 26.
- REUTERS
Australia's Reserve Bank holds interest rates
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