Borrowers can breathe a sigh of relief.
The latest inflation figures suggest there is no rush for the Reserve Bank to start lifting interest rates.
The head of the lobby group representing the big banks also sees little reason for independent mortgage rate moves in the immediate future despite new regulatory capital requirements.
"I don't see any evidence, and certainly nothing from banks, that is suggesting that that would be a burden to them ... you wouldn't expect it to be driving costs," Australian Bankers' Association head Anna Bligh told the National Press Club in Canberra on Wednesday.
The consumer price index rose 0.2 per cent in the June quarter for an annual rate of 1.9 per cent, falling below the central bank's two to three per cent target band.
While some fruit and vegetable prices were impacted by tropical cyclone Debbie on northeast Australia in late March, these were offset by falls in other seasonally available fruits, the Australian Bureau of Statistics said.
There was also a 2.5 per cent drop in petrol prices in the quarter.
Underlying inflation - which smooths out volatile price swings and is the central bank's guide to interest rate movements - was equally benign, rising 0.5 per cent in the quarter for 1.8 per cent over the year.
"There is no smoking gun to justify a change of interest rates in any direction," Commonwealth Securities chief economist Craig James said.
He expects the Reserve Bank to stay on the interest rate sidelines until next year.
The official cash rate has stood at a record low 1.5 per cent since August last year.
Reserve Governor Philip Lowe told a conference in Sydney there has been a welcome pick-up in employment growth right across the country over the past few months.
Businesses are also reporting better conditions than they have for some years and job vacancies and hiring intentions have all lifted.
"This is good news, particularly given that the unemployment rate is still around half a percentage point above estimates of full employment in Australia," he told an Anika Foundation lunch.
As such, he expects wage growth - presently at a two-decade low - will pick up gradually as the demand for labour strengthens.
Other figures on Wednesday showed job advertising on the internet rose 0.9 per cent in June to be 3.1 per cent higher than a year earlier.
Job ads rose in all eight occupations monitored by the Department of Employment in the month.
