The widely expected move will offer little relief for home owners reeling from the costs of higher mortgage repayments.

The accompanying statement by RBA Governor Glenn Stevens, largely similar to the one released in the last rate decision in June, cited the rising cost of petrol as one of the factors slowing domestic demand.

At the same time, Mr Stevens noted that "rising prices of oil and a range of other commodities are adding to global inflationary risks".

The last rate move was on March 5, when the RBA increased the cash rate 25 basis points to 7.25pc.

The RBA raised rates four times between August last year and March as underlying inflation soared to a 16-year high.