The RBA met this week to discuss the possibility of an increase, but as predicted by economists, rate rises were kept at bay.

In his statement, the bank's Governor Glenn Stevens said while there was no change this month, inflation would remain high in the near future.

He said that it was looking more likely that demand would remain "subdued'' and economic growth would be fairly slow in the short-term.

He added that inflation was expected to drop below 3 per cent, given that wage growth and consumer demand remained steady.

The official cash rate, although at a 12-year high, sits at 7.25 per cent.