Taking its cue from the inflation jitters set by other neighbors in the Asia-Pacific Region, the Reserve Bank of Australia has maintained the country's benchmark rates steady on the fifth straight meeting at 4.75 percent.

The RBA said in an issued statement that monetary officials consider the longer term effect of underlying inflationary effects.

The central bank today said recent information suggested the "marked decline" in underlying inflation from its peak in 2008 had "run its course".

But RBA governor Glenn Stevens signalled the board was likely to wait until it has at least seen the June quarter inflation data due in late July before deciding whether to adjust rates.

"While the rising exchange rate will be helping to hold down prices for some consumer products over the coming few quarters, over the longer term inflation can be expected to increase somewhat if economic conditions evolve broadly as expected." Mr Stevens said in an accompanying statement to the rates decision.

The decision today to keep the official cash rate at 4.75 percent came just aweek after first-quarter consumer prices jumped and analysts referred as the fastest quarterly pace in five years.

Mr Stevens said the RBA judged the "current mildly restrictive stance on monetary policy remained appropriate" but the central bank would keep a close watch.

"In future meetings, the board will continue to assess carefully the evolving outlook for growth and inflation," Mr Stevens said. This suggests the central bank will wait until it has seen the second quarter inflation figures, due on July 27, before making a decision on whether to tighten monetary policy.

In a note to clients, IG Markets analyst Ben Potter said Mr Stevens' statement "was perhaps a little less hawkish than some participants had anticipated." "Hence, we've seen the Australian dollar dip below $US1.09 for the first time in a couple of days," he said.