Reserve Bank of Australia governor Michele Bullock has ruled out a rate cut before Christmas, warning the economy remains too hot, inflation is too high and that means “near-term interest rate cuts are not on the agenda”.

“What I’m trying to tell the markets today is that I think probably expectations for interest rate cuts are a little bit ahead of themselves,” Ms Bullock said on Tuesday after announcing the cash rate had been left unchanged at 4.35 per cent.