The Reserve Bank of Australia's (RBA) board today said strong commodity prices had risen further in recent months and private investment was also rising.

"Australia's terms of trade are at their highest level since the early 1950s and national income is growing strongly," RBA governor Glenn Stevens said in a statement accompanying the board's decision.

"Private investment is picking up, mainly in the resources sector, in response to high levels of commodity prices."

However, Mr Stevens said inflation pressures had eased.

"Inflation is consistent with the medium-term objective of monetary policy, having declined significantly from its peak in 2008," he said.

"These moderate outcomes are being assisted by the high level of the exchange rate, the earlier decline in wages growth and strong competition in some key markets, which have worked to offset large rises in utilities prices."

The central bank last raised the cash rate in November 2010, from 4.5 per cent to its current 4.75 per cent.