Since the rate hike has caused slowing down of the economy and has also reduced the risk of higher inflation, the Reserve Bank of Australia, is expected to keep the key rates as constant.

It is said that Governor Glenn Stevens and his board will not change the overnight cash rate target which is at 4.75 per cent. The same was the opinion of 25 economists that were survey by Bloomberg News.

Stevens also said that lawmakers are standing in testimony that took place 10 days ago that "there's unlikely to be anything from us imminently" on borrowing costs. He added that there are chances Australian economy will not be able to reach the apex bank's forecast of 3.5 per cent in 2010. This is going to happen even after the last quarter saw slowest pace of growth in two years.

And now, RBA is trying to contain prices by using some of the largest banks and controlling their mortgage rates by almost doubling them.

Post the new, Aussie currency declined to 99.01 U. S. cents as of 11:33 a. m. in Sydney from 99.31 cents in New York last week.