Australia's central bank held interest rates steady on Tuesday, as expected, and cautioned policy would need to stay restrictive for some time yet, strongly suggesting borrowers could expect no Christmas cheer this year.

Australia's central bank held its benchmark interest rate at 4.35% for the eighth meeting in a row. The Reserve Bank of Australia wrote in its statement that "inflation has fallen substantially since the peak in 2022,

By keeping rates high, the Reserve Bank has undercut the claims of the Albanese Labor government to be alleviating the cost-of-living crisis.