Australia's central bank has kept its cash rate steady at 4.35%, citing a slowdown in the economy amid tighter financial conditions.

Australia's central bank has kept its cash rate steady at 4.35%, citing a slowdown in the economy amid tighter financial conditions, but has cautioned that a rate hike remains on the table if needed to bring inflation under control.

The S&P/ASX 200 Index rose by 0.4% to 8,915 points after the Reserve Bank of Australia opted to keep its official cash rate on hold at 4.35%.

The Reserve Bank of Australia has kept its official interest rate at 4.35% following an economic slowdown and a four-year high in unemployment.

The Reserve Bank of Australia kept its official interest rate on hold at 4.35% on Tuesday after economic activity slowed and unemployment hit a four-year high.

The Reserve Bank of Australia has left its official interest rate on hold at 4.35%.