The Reserve Bank of Australia has outlined it is willing to be patient on the evolving inflation issue before it decides to make any changes to its existing interest rate settings.

On Tuesday, the RBA announced the cash rate would remain at 0.1 per cent but flagged the time had come for it to ease its additional quantitative easing measures brought in during the pandemic.

The RBA's targeted bond buying regime is set to end on February 10.

RBA Governor Philip Lowe in his monthly statement said inflation had risen faster than predicted, but warned supply constraints and Omicron uncertainties were distorting consumption patterns.

"One source of uncertainty is the persistence of the disruptions to supply chains and distribution networks and their ongoing effects on prices," Dr Lowe said. "It is also uncertain how consumption patterns will evolve and how this will affect the balance of supply and demand, and hence prices."

His comments come after the US Federal Reserve said the faster than expected inflation rise in the major North American economy would prompt an earlier rate as early as March.

The "prepared to be patient" comments also fall in the backdrop of domestic economists signalling the RBA would need to hike rates faster than its initial timeline due to inflation surges.

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Dr Lowe highlighted the levels of inflations sustained in the Australian economy were comparatively lower than other countries.

The RBA's central forecast is underlying inflation will increase to around 3.25 per cent in the coming quarters and then fall to 2.75 per cent in 2023.

Its underlying inflation target range to enact a rate change is between 2 to 3 per cent.

"While inflation has picked up, it is too early to conclude that it is sustainably within the target band," Dr Lowe said. "There are uncertainties about how persistent the pick-up in inflation will be as supply-side problems are resolved."

Wages growth also underpins the RBA's timeline of upping rates, however Dr Lowe in his statement said it would only pick-up once the labour market tightens.

"Wages growth has picked up but, at the aggregate level, has only returned to the relatively low rates prevailing before the pandemic," he said.

The governor also outlined the unemployment rate is expected to further fall to around 3.75 per cent by the end of next year.

Gross domestic product is expected to grow in excess of 4 per cent over 2022 and more than 2 per cent in 2023.

Economists at ANZ predict the cash rate will lift to 0.75 per cent by November and then reach 2 per cent by the end of 2023.

Dr Lowe also noted the ceasing of bond buying does not imply a near-term increase in interest rates.

The RBA's interest rate decision coincided with December's lending data from the Australian Bureau of Statistics, which showed new loan commitments rose 4.4 per cent compared to the prior month.

The RBA is set to release more detailed economic forecasts later this week.