Two women walk next to the Reserve Bank of Australia headquarters in central Sydney, Australia February 6, 2018.
REUTERS/Daniel Munoz/File Photo Acquire Licensing RightsSYDNEY, Dec 5 (Reuters) - Australia's central bank held interest rates steady on Tuesday as expected, buying it more time to assess the state of the economy and to determine whether further hikes might be needed next year.
Wrapping up its December policy meeting, the Reserve Bank of Australia (RBA) kept rates at a 12-year high of 4.35%, adding economic data received since November had been broadly in line with expectations.
"Holding the cash rate steady at this meeting will allow time to assess the impact of the increases in interest rates on demand, inflation and the labour market," RBA Governor Michele Bullock said.
She has since warned that inflation has become increasingly driven by domestic demand, requiring a more "substantial" response from interest rates.
Daniel Munoz, Michele Bullock, Bullock, Stella Qiu, Jamie Freed
Reserve Bank of Australia, REUTERS, Rights, Thomson