Australia's central bank left its benchmark interest rate unchanged on Tuesday in order to assess the impact of the past tightening on the economic activity.
The policy board of the Reserve Bank of Australia decided to hold the cash rate target unchanged at 4.10 percent. The bank was widely expected to hike the rate by a quarter point.
The interest rate paid on Exchange Settlement balances was kept unchanged at 4.00 percent.
The decision to pause the rate hike will provide further time to assess the impact of the increase in interest rates to date and the economic outlook, Governor Philip Lowe said.
Further, he said some further monetary policy tightening may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon the data and the evolving assessment of risks.
