Australian monetary policy makers are keen to use the elements of the financial stress tests initiated in European banks and local inflation figures to assess whether to increase interest rates further.

"The important question for the board at its next meeting would be whether the new information materially changed the medium-term outlook for inflation," Reserve Bank of Australia (RBA) officials said in minutes of their July 6 meeting released in Sydney today.

It has been two consecutive weeks that monetary officials have retained borrowing costs after six times of increases started since October 2009, six times to cool the impact of inflation. This gallant move of Australian monetary authorities at that time has put the country at the forefront of financial and monetary stability in the Asia- Pacific Region.

Helen Kevans, an economist at JP Morgan Chase &Co in Sydney told Bloomberg that this is a clear message from the Reserve Bank and it is now waiting for further for other pieces of important economic data before it makes its next move on interest rates.

Kevans noted that the scenario is to prevent the growing economy from stoking inflation.

She said in a Bloomberg report: "The inflation picture going forward is deteriorating quite quickly. We've got terms of trade that's set to approach record highs, wage inflation is set to build quite considerably and the economy is already growing around trend and doing so with very little spare capacity."