RBA holds but hints cut to come soon

The Reserve Bank of Australia kept rates at a 12-year high for the fifth-straight month on Tuesday but suggested that it could soon lower borrowing costs.

Glenn Stevens, the governor of the Reserve Bank, said following Tuesday's vote that pressure to keep rates high was abating: "With demand slowing, the [rate-setting] Board's view was that scope to move towards a less restrictive stance of monetary policy in the period ahead is increasing."

Demand had, he said, moderated as a result of the R