Reserve Bank of Australia holds interest rates at 4.35 percent

Australia's central bank has kept its main interest rate at 4.35 percent for the second meeting in a row. The Reserve Bank of Australia made the decision on Tuesday, and all board members agreed. Economists and financial markets had widely expected this outcome.

The RBA raised rates three times earlier this year, by a total of 0.75 percentage points. It has now held rates steady for three months. The bank wants to bring inflation down to its 2.5 percent target. It has warned that further increases are still possible if inflation stays too high.

Home prices in Sydney and Melbourne have already fallen because of the earlier rate rises. The current hold gives some relief to households and businesses that are carrying debt.