The Reserve Bank yesterday predicts that there is a possibility that interest rates may not rise for the next months or so.

During its board meeting yesterday, the RBA confirmed that its monetary policy was “well placed for the present.”

The RBA said yesterday its domestic economy will go on at a reasonable pace while its commodity markets remain strong.

It was noted that China's steel production has helped the global in terms of strength, as it pushed for a stronger demand for steel-related commodities.

Iron ore contracts also surged up to 100 per cent in the June quarter, with spot prices remaining stronger since those contracts were negotiated.

Coking coal prices also rose up significantly.

The Chinese economy is already booming, with a growth estimated at nearly 3 per cent in the March quarter and 12 per cent in the year.

Surveys also showed that businesses remained strong, although conditions in different sectors vary.

Employment showed a steady pace in March unlike the fast pace last year, while labor market pushes for a solid growth.

A decline on business credit seems to be ending as banks are making strategies to boost their lending services.

Household spending is slow due to the consistent rise of interest rates.

Real estate also remained strong, especially in Melbourne and Sydney. However, housing loan approvals for owner-occupiers was slow.

Nationwide, the average prices surged to 1 per cent per month in the first three months of FY2010 and auction clearance rates strengthened last month.