Australia's central bank on Tuesday held interest rates steady as expected and reiterated that policy needed to stay tight, sticking to its guns a week after the Federal Reserve started its easing campaign with a bang.

The Reserve Bank of Australia kept interest rates steady, deepening a split with global counterparts including the Federal Reserve that are loosening policy as they grow increasingly confident that inflation is under control.

Australia's central bank held interest rates steady on Tuesday as expected, while reiterating that policy needed to stay tight and it was not ruling out further increases if needed to control inflation.

At its September meeting, the Reserve Bank of Australia held its cash rate at 4.35%, matching market expectations and maintaining borrowing costs for the seventh consecutive meeting. The committee decided to keep the interest rate on balances held in exchange for settlement at 4.

Interest rates predicted to stay on hold when Reserve Bank wraps up its meeting. Arsenal star hailed as the 'best in the world' after Man City draw Why you should never cook these six things in an air fryer Late starters: 20 celebs who found fame in their later years What is the Rule of 72,