As most economists had predicted, the Reserve Bank of Australia (RBA) opted for a pause on the country's rate movement and allowed the prevailing cash rate of 4.75 percent to roll over in December.

The RBA's Tuesday decision came both as anticipated and welcomed by Australia's business community as an earlier AAP survey on 15 economists was affirmed when it contended that the central bank would move for a hold, and that could be the case for some more months to come.

RBA governor Glenn Stevens cited the continuing expansion of both the Indian and Chinese economies as viable bases for the RBA board's decision to carry over the existing rate into December while he noted that Europe's financial situation still requires some concerns.

However, Stevens maintained that Australia is currently enjoying a high level terms of trade, last seen in the 1950s, while business investments are beginning to pour down on the Australian economy and firing up more job creations, which the RBA governor said are essential recipes for expansion.

The RBA's generally glowing review of the economy is gravitating towards further hold on lifting the cash rate until early next year, according to Macquarie Group chief economist Brian Redican.

Redican said that the RBA outlook is almost a give away and with the prevailing banking rates, the central bank expressed confidence that "the current monetary policy setting was appropriate for the economic outlook."

Stevens is also upbeat that inflation remains under control as the rising value of the Australian dollar and high commodity prices practically ensure that a check on that economic indicator is almost always present.

That containing measure is further buffered by the solid monetary policy currently in place in Australia and other major economies, with the RBA reassuring that "this will assist, at the margin, in containing pressure on inflation over the period ahead."

Overall, many economists agreed with Steven's assertions that no major upheavals should be seen in the inflation department for the first half of 2011 though the RBA reminded that if the projected economic growth should materialise within the same period, inflation rate could inch up a little but only for the medium term.

Eventually, the RBA would push for a raise of up to 0.25 percent but economists maintained that it would not happen until after the first quarter of 2011.