Rates on hold but RBA 'not ruling anything in or out'

RBA governor Michele Bullock said the central bank could not rule out further interest rate changes. (Dean Lewins/AAP PHOTOS)

Encouraging signs on inflation allowed the Reserve Bank to keep interest rates on hold for the third meeting in a row and soften its stance on the likelihood of more hikes.

The board came to its decision to keep interest rates on hold at 4.35 per cent on Tuesday after two days of reviewing the state of the economy and progress on inflation.