The Reserve Bank has held the cash rate at 4.35 per cent following its board meeting on Tuesday, flagging that inflation is “still too high”.

Despite overwhelming evidence of high interest rates hurting retailers and sectors including transport and construction, as well as consumers, the Reserve Bank of Australia has chosen to keep interest rate unchanged at 4.

Australia’s central bank on Tuesday reiterated that interest rate cuts were unlikely in the near term as it held policy steady, but softened its hawkish stance by saying monetary tightening was not discussed.

The Reserve Bank of Australia kept interest rates steady, deepening a split with global counterparts including the Federal Reserve that are loosening policy as they grow increasingly confident that inflation is under control.

Australia's central bank held interest rates steady on Tuesday as expected, while reiterating that policy needed to stay tight and it was not ruling out further increases if needed to control inflation.

The Reserve Bank of Australia held the cash rate steady at 4.35 per cent at its September meeting and kept all options open in its fight against inflation.

At its September meeting, the Reserve Bank of Australia held its cash rate at 4.35%, matching market expectations and maintaining borrowing costs for the seventh consecutive meeting.

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