Australian central bank holds rates, but hints at policy easing if needed

Sydney

AUSTRALIA's central bank kept its cash rate steady at a record low of 2 per cent on Tuesday, but said subdued inflation meant there might be room for a further easing if needed to support the economy.

The Reserve Bank of Australia (RBA) disappointed some by not cutting straight away at its monthly policy meeting, though the shift to an explicit easing bias kept alive the prospect of a move at some stage.