The Reserve Bank of Australia (RBA) has kept interest rates on hold, leaving the cash rate unchanged at 4.5%.

The RBA’s decision to leave rates steady was widely expected and is the second consecutive month of unchanged rates, as the central bank assesses the movement of the local and global economic recovery.

Glenn Stevens, RBA Governor, said that interest rates are now around their average levels of the past decade. He also said “pending further information about international and local conditions for demand and prices, the Board views this setting of monetary policy as appropriate.”

The RBA has lifted the official interest rate six times since October in a bid to curb excessive spending while the economy continues to expand.

The monthly TD-Securities/Melbourne Institute inflation gauge rose for an eighth consecutive month, up 0.3 per cent in June for an annual reading of 3.6 per cent.

The annual reading is well above the RBA’s target range for inflation between 2 and 3 per cent. Everyone will be keeping a close eye on the June quarter consumer price data, out at the end of the month.