Australia's central bank on Tuesday left its cash rate steady as widely expected but took a small step towards further easing in a policy meeting dominated by risks of a global trade war.

The Reserve Bank of Australia (RBA) maintained its cash rate at 4.1% during its April meeting, retaining borrowing costs unchanged after a 25-basis point cut in the February meeting, in line with market expectations.

The central bank’s newly formed monetary policy board issued a warning about the darkening global growth outlook and the dangers associated with a deteriorating geopolitical environment.