The Reserve Bank of Australia has reiterated that it will soon cut its key rate, now at a 12-year high, on signs that high borrowing costs are now curbing domestic demand.

In its latest monetary policy statement, the Reserve Bank said that a slowdown in domestic demand was behind the central bank's decision to leave its policy rate unchanged and that, should these conditions continue, a less restrictive monetary policy approach is likely.

The Reserve Bank said earlier this month that the