Australia's central bank holds interest rates at 7.25% (by Chris Oliver)

HONG KONG (MarketWatch) -- Australia's central bank kept its short-term interest rate target at a decade-high 7.25% Tuesday, as expected. In an accompanying statement Reserve Bank of Australia Gov. Glenn Stevens said past interest-rate hikes and tighter lending standards have led to substantial tightening in financial conditions since the middle of last year. "The evidence is that the tightening in financial conditions, in conjunction with other factors including rising fuel costs, is working to restrain demand," Stevens said in a statement posted on the RBA Website.