The Reserve Bank of Australia (RBA) is in no mood of increasing the interest rates in coming months.

According to the quarterly statement of the monetary policy, the central bank of Australia is expecting to achieve growth rate of 4% by the year 2012 end.

The news agency, AAP said, this reveals that the inflation rate will stay at 2.75% till the end of next year and will jump to 3% by the year 2012.

The statements quotes, "The main downside risk on the domestic front is that the forecast pick up in private demand occurs more slowly than expected and does not fully offset the contraction in public spending over the next few quarters''.

On Tuesday, 3rd August, RBA claiming the current interest rates same as the average rates, seized the official cash rate at 4.5%.

For the current year, the RBA has forecasted the GDP growth of 3.25% and between 3.75 to 4% for the year 2011-12.

Helen Kevans, JP Morgan economist said that this is positive outlook for the domestic economy, but increase in the underlying inflation and the growth can push the cash rate higher.