Canberra, June 16 (QNA) - The Reserve Bank of Australia (RBA) Governor Michele Bullock said that holding the interest rate at 4.35% does not signal the end of tighter financial conditions, warning of the possibility of further rate hikes if inflationary pressures persist.

Bullock said that the bank has raised interest rates three times this year by 0.25% on each occasion, noting that these increases were necessary to curb demand and control inflation.

The Australian economy is experiencing a decline in consumer and business confidence, alongside continued resilience in spending and investment, as well as an improvement in the housing market, she added.

Bullock affirmed that inflation risks remain, warning that continued cost increases could keep inflation elevated, potentially requiring further monetary tightening. (QNA)