The Australian central bank may keep its benchmark interest rate unchanged for the second month as inflation rates are seen to be in the upside keeping consumers on the sidelines.

Reserve Bank of Australia Governor Glenn Stevens and his board might leave the overnight cash rate target at 4.5 percent at 2:30 p.m. in Sydney tomorrow, according to a survey done by the International Business Times of some 20 economists surveyed today.

Craig James, a senior economist at Commonwealth Bank of Australia, said in an interview that Governor Stevens is now on the mode of returning the average borrowing costs in Australia.

He added that policy makers have also hinted that the decision to resume rate gains will hinge on inflation figures due late this month.

In a statement, Governor Stevens said: "The process of normalizing rates has been completed and any further rate hikes would signal a tightening cycle -- which is unlikely to occur until the Reserve Bank views the June quarter inflation data."

Mr. Stevens has increased rates six times since early October from a half-century low of 3 percent, citing an economic expansion the central bank forecasts will almost double to 4 percent in the next two years fuelled by China's demand for iron ore and energy.

Currency stabilizes

The interest rates actually gave the Australian currency a slight nudge, making it the second-best performer among the world's 16 most-traded currencies. The Australian dollar traded at 84.20 U.S. cents at 11:09 a.m. in Sydney, little changed from late last week.