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The central bank has little need to cut the cash rate in coming months because of its confidence about economic growth in the short and medium term, economists say.
In its Statement of Monetary Policy released on Friday, the Reserve Bank of Australia (RBA) said economic growth in 2012 would be higher than previously expected.
It now expects gross domestic product (GDP) to grow by 3.5 per cent in 2012, up from its 3.0 per cent forecast in May.
"The economy is then expected to grow at around three per cent over 2013 and 2014, little changed from the May statement," the RBA said.
HSBC chief economist Paul Bloxham said the RBA seemed content with how the Australian economy was travelling, despite an acknowledgment of possible risks from the euro zone.
"Europe does present the biggest downside risk, and it's clear that's where they think the biggest risk lies," he said.
"But in general it's a fairly upbeat statement - their medium term growth forecasts are pretty much what they were in May, and in the short term, growth is stronger and inflation is lower."
The possibility of another cash rate cut in 2012 was becoming a closer call, Mr Bloxham said.
AMP chief economist Shane Oliver said the statement showed that the RBA is still comfortable about current interest rate settings.
"I don't see any clear bias in this statement either way in terms of future interest rate moves," he said.
"It's sort of neutral, with the Reserve Bank in wait and see mode."
Dr Oliver said most of the interest from the Statement on Monetary Policy will be the comments on the high Australian dollar.
"It might get some thinking that the Reserve Bank is close to intervening," Dr Oliver said.
"It does suggest the strong Aussie dollar is on their mind, something they're looking at quite closely.
"A stronger Australian dollar would bear down on growth than (would) otherwise be the case."
Dr Oliver said if the Australian dollar stays strong because of investor demand for it, rather than strong commodity prices then the result could mean lower inflation in Australia.
"It would surely justify lower interest rates," he said.
"In one way it could be interpreted for interest rate cuts."
Based on information provided by and with the permission of the Western Australian Land Information Authority (2013) trading as Landgate.