Reserve Bank of Australia Assistant Governor Christopher Kent said the central bank's three rate increases this year, totaling 75 basis points since February, are working as intended by restraining consumer spending and slowing broader economic activity, while leaving the risk of further tightening on the table. After the RBA held the cash rate at 4.35% for a second straight meeting, Kent said policy is judged to be somewhat restrictive, but warned inflation risks remain tilted to the upside and rates may still need to rise if factors such as a reopening of the Strait of Hormuz within a reasonable time and stronger productivity growth do not materialize. Core inflation was 3.6% in the June quarter, still above the RBA's 2% to 3% target band, and the remarks were interpreted as signaling a possible higher-for-longer rates outlook in Australia. Market pricing implies roughly a 54% to 75% chance of one more move to 4.60% by December, while a majority of economists polled by Reuters think the cash rate has already peaked.