The Reserve Bank has held the official cash rate steady, as expected, and reiterated rate cuts are a long way off.

The benchmark rate was left unchanged at 5.5 per cent for a third meeting in a row.

The central bank says inflation is falling as the economy slows and labour market pressures ease, but core inflation is stubborn and interest rates need to stay high for a prolonged period.

Forecasters had overwhelmingly expected the cash rate to be held.

More to come...