The Reserve Bank of Australia is set to keep interest rates steady in the coming months as an upsetting slowdown most likely sets in around the world.

Australia has been cited as a a global bellwether, after in October becoming the first Group of 20 member to increase interest rates since the financial crisis begun in 2008.

Central bank Governor Glenn Stevens urged the markets that the level of rates for the near term should not be used as a reference level.

He kept the benchmark cash rate at 4.5 percent for a second month, even as he forecast inflation would likely accelerate above the top of his 2 percent to 3 percent target range.

"The bar has been lifted on raising official interest rates," said Paul Brennan, a senior economist at Citigroup Inc. in Sydney said in a report cited by Bloomberg. "The fact that the bank has not responded to this change in the inflation outlook with an adjustment to monetary policy or the tone of the statement indicates that the bank is comfortable with the setting of policy."

Governor Stevens halted further cuts as China's economic growth showed moderate growth and Europe's governments backtracked on spending.