RBA interest rates: Reserve Bank holds cash rate at 4.35% but threatens more hikes if needed

RBA interest rates: Reserve Bank of Australia governor Michele Bullock is set to speak this afternoon after the cash rate was held at 4.35%. Photograph: Dean Lewins/AAP

The Reserve Bank of Australia has held the official cash rate at 4.35% but warned higher interest rates are “quite possible” even if house prices keep falling.

Tuesday’s decision to hold was predicted by economists and financial markets, after three rate rises this year hit property values across the capital cities.