The central bank of Australia RBA has kept the official cash rate at 4.75 % and decided not to increase it any further.

The official cash rate was held back since the RBA increased the lending rate last month following which all the major banks had opted for a much steeper hike.

The Reserve bank of Australia was of the view that the current cash rate was best according to the present economic scenario.

The governor believed that the current rates were a little above average after the previous month's hike and needed no further increment. Since October last year the cash rates have seen a seven fold rise.

The steep rise in the value of Australian dollar would also help the inflation rates to be under control. The inflation however is expected to increase in the short to medium term.

The Australian economy has seen a boom in the mining industry like never before, because of the increasing demand in China. Since the 1950s the ratio of export to import prices has been the highest. The employment rate has also increased and the country has a very positive economic outlook.