As was widely expected, the Reserve Bank (RBA) decided to again leave the Official Cash Rate steady at 7.25 per cent for the fifth month in a row.

In a statement announcing the decision, Governor Glenn Stevens said that with demand slowing as it is, the Bank is forecasting that inflation will fall below 3 per cent during 2010.

Economists are now predicting the RBA will order a rate cut as soon as next month and this seems to have been the message in Governor Glenn Stevens' statement when he said the Board's view is that "scope to move towards a less restrictive stance of monetary policy in the period ahead is increasing".