The Central Bank today hinted an increase in interest rates as Reserve Bank of Australia governor Glenn Stevens said policy makers would manage what he described as a "robust economic upswing".

Speaking in Shepparton in regional Victoria on monetary policy and the regions, Mr Stevens noted that while local economic growth should be above trend in 2011, the low rate of inflation seen over the past two years was near its trough.

He said the global economy would likely record reasonable growth over the coming year, partly due to strength in Asia, outside of Japan, and in Germany, though it would not be as strong as the past 12 months.

Mr Stevens said, "that central forecast could turn out to be wrong. Something could turn up internationally or at home that produces some other outcome."

"But if downside possibilities do not materialise, the task ahead is likely to be one of managing a fairly robust upswing."

"Part of that task will, clearly, fall to monetary policy," he said.

The RBA's stated mission is to keep inflation in a target band of 2 to 3 per cent on average over the medium term.

The central bank rapidly lifted the cash rate, from 3 to 4.5 per cent, in six increments between October last year and May.

The underlying rate of inflation, which influences its rate moves, fell from 4.7 per cent in the September quarter of 2008 to 2.7 per cent at June 2010.

The next rate-setting RBA board meeting is scheduled for October 5, while the minutes of its September meeting are expected to be out tomorrow.

Meanwhile, the debt futures market is currently pricing in a slim chance of a rate rise in October.