As economists predicted, the Reserve Bank of Australia has kept cash rates on hold, giving debtors another month of regular payment costs amid rising inflation pressure.

The central bank's ruling to maintain its key cash rate at 4.5 per cent records the second month in a row of unmoved rates, as the RBA evaluates the pace of the local and international economic recovery.

RBA governor Glenn Stevens said in a statement along with the decision, interest rates were now about their average levels of the past 10 years.
"Pending further information about international and local conditions for demand and prices, the board views this setting of monetary policy as appropriate," he said.

The RBA has increased the official interest rate six times since October in an effort to hinder extravagant spending while the economy continues to grow.
Since May, however, doubts have accumulated over global markets with fears of a returning credit crisis rising in Europe, while the recovery in the US economy seems feeble.

"Caution in financial markets has been evident in the past couple of months, driven principally by concerns about European sovereigns and banks but also by some uncertainty about the pace of future global growth," Mr Stevens said.