June is the 22nd month that the Reserve Bank has kept interest rates on hold at 1.5%.

A combination of low inflation, reflecting weak wages growth, an elevated Australian dollar and a cooling of house prices are offset against a background of improving non-mining investment, rising solid infrastructure investment and net exports, supported by robust global conditions, has kept the RBA on the sidelines.

Macquarie Bank is maintaining its view that interest rates are on hold until the first or second quarter of 2019.

Rick Maggi