The Reserve Bank kept interest rates unchanged for the third consecutive month today, giving borrowers another few weeks of relief from soaring mortgage repayments. The official cash rate stays where it has been since May at 4.5 per cent.

From October, more than $300 has been added to the cost of a repayment on an average $300,000, 25-year mortgage as banks passed on the Central Bank's six official, quarter-percentage-point rises in varying degrees.

The Australian currency slightly went up from 90.95 to 91.10 US cents on the cash rate ruling. Earlier, the local unit reached 91.43 US cents but fell after retail trade and building approvals figures from the Australian Bureau of Statistics came in lower than expected.

"The caution evident in financial markets in the past few months has abated of late, helped by the disclosure of information about European banks," RBA governor said in a statement accompanying the decision.

"Nonetheless, the global outlook remains somewhat more uncertain than a few months ago and this is reflected in the volatility of financial prices."

Moody's Analytics economist Matthew Circosta said the move confirms that the RBA "is getting things under control (and that) recent tightening has subdued both consumer demand and the housing market".

The ruling follows weaker-than-expected quarterly inflation data, which was issued last week.

"With medium-term inflation pressures tracking within the central bank's target, this should allow interest rates to stay unchanged for the meantime," Mr Circosta said.

The Reserve Bank said inflation had fallen to its forecast level of 2.75 per cent and underlying inflation would possibly be in the top half of the 2-3 per cent preferred band through to the middle of 2011.

Nevertheless, the country's strong labour market, with a jobless rate of only 5.1 per cent, may steer up inflation by October, said Mr Circosta.

"If it does, this would leave the door open for another upward nudge to interest rates before the close of the year."