RBA leaves rates on hold
The Reserve Bank of Australia (RBA) left the cash rate steady at 4.75 per cent at its regular monthly board meeting on Tuesday.
The decision was expected, with all 11 economists surveyed last week predicting the RBA would keep rates on hold.
The central bank's board last raised the rate from 4.5 per cent in November 2010.
RBA governor Glenn Stevens said underlying inflation has been in the bottom half of the target range, though a gradual increase is expected over time.
"Year-ended CPI (consumer price index) inflation is likely to remain elevated in the near term due to the extreme weather events earlier in the year," Mr Stevens said.
"However, as the temporary price shocks dissipate, CPI inflation is expected to be close to target over the next 12 months."
The central bank said it would continue to "assess carefully the evolving outlook for growth and inflation"
.