Australia's central bank holds rates, cautious on inflation

SYDNEY, Sept 30 (Reuters) - Australia's central bank on Tuesday left its cash rate steady as expected at 3.60%, saying recent data suggested inflation might be higher than forecast in the third quarter and the economic outlook remained uncertain.

Wrapping up a two-day policy meeting, the Reserve Bank of Australia said the board judged it was appropriate to remain cautious on policy, but was well placed to respond to international developments.

Markets had seen scant chance of a further easing this week following a quarter-point cut in August, while a high reading on monthly consumer prices had argued for waiting for the full third-quarter inflation report due in late October. AU/INT