The rate-setting board of Australia's central bank chose on Tuesday to keep the cost of borrowing on hold, citing policy tightening in China and uncertainty over the impact its three consecutive rate hikes will have on the economy.

The board noted that China was "now seeking to reduce the degree of stimulus to their economy." Australia's economy is heavily reliant on exports of raw materials to China as well as trade to the Asia-Pacific region more broadly.
The decision surprised markets which