The Australian Industry Group (AiG) says official interest rates can remain on hold for an extended period after yesterday's better-than-expected inflation figures.
The Reserve Bank's decision at the beginning of this month not to raise interest rates surprised some analysts.
But after yesterday's inflation numbers, the outcome from next week's central bank board meeting is viewed as a foregone conclusion.
At 2.4 per cent, annual inflation is at a two-year low, while underlying measures are also back comfortably within the officially-targeted range.
The AiG says the Reserve Bank will be able to take an extended "wait and see" approach.
It also hopes reduced interest rate speculation will take some of the heat out of the Australian dollar.
But after dropping almost one cent on the figures yesterday, the dollar has climbed 0.4 cents overnight to 82.76 US cents.
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