Bets are off for RBA rate cuts, but keep one eye on China

Sydney

AUSTRALIAN central bank Governor Philip Lowe gave his clearest sign yet he's not hankering to cut the nation's record-low cash rate.

Mr Lowe's upbeat economic growth outlook on Tuesday combined with a concession that house prices in some markets had been "rising briskly" signals he'll be unwilling to cut again and risk stoking property values further. That spurred money markets to pare bets for easing through the end of 2017 to a one-in-three chance. The upshot: it will take more than just low inflation to draw another policy response.