Australia central bank rules out near-term rate cut on inflation risks

Pedestrians walk past the Reserve Bank of Australia building in central Sydney. — Reuters

SYDNEY: Australia's central bank on Tuesday ruled out the possibility of an interest rate cut this year, saying core inflation is expected to come down only slowly, after it held interest rates steady for a sixth straight meeting.

The Australian dollar firmed 0.3% to $0.6517 and three-year bond futures extended declines to be off 29 ticks to 96.4, as markets pared back the chance of a November rate cut to 55% from 88% before the policy decision on the unexpectedly hawkish messaging, although they are still fully priced for a cut by December.