Australia's RBA keeps key cash rate on hold (by Sarah Turner)

SYDNEY (MarketWatch) -- The Reserve Bank of Australia's interest-rate setting committee Tuesday decided to keep the country's key cash rate on hold at 4.75% for the 11th straight month, but also hinted that it could cut rates in the future if required. "Conditions in global financial markets have continued to be very unsettled, with uncertainty increasing about both the prospects for resolution of the sovereign-debt and banking problems in Europe, and the outlook for global economic growth," the RBA committee said. It added that the path for inflation may now be more consistent with its 2%-3% target in 2012 and 2013 and said "an improved inflation outlook would increase the scope for monetary policy to provide some support to demand, should that prove necessary." The Australian dollar (CUR_AUDUSD) lost ground following the decision, falling to 94.93 U.S. cents, from 95.27 U.S. cents before the announcement.