Tuesday, Reserve bank of Australia announced unchanged interest rate at 4.75 percent, leaving a policy unchanged rather than tightening as expected by some analysts' to curb inflation.

In a brief statement after its monthly policy meeting, the Reserve Bank of Australia (RBA) said only that rates were appropriate given the economic outlook. That was a change from its monetary policy outlook in May when it said a further tightening would likely be needed.

Markets had priced in only a small chance of a hike at this meeting and the statement led them to trim the risk of a move in July or August. The central bank has led the developed world in lifting rates by 175 basis points since late 2009.

The Australian dollar slipped almost half a U.S. cent as the statement was not as hawkish as some had bet on. Interbank futures rallied as the market scaled back the chances of a hike in the next few months as well.

( Source: Reuters )