The Reserve Bank of Australia has hinted another interest rate increase on May.

A detailed minutes of the board meeting on April 6 was released today and it iterates the decision to raise the cash rate for the fifth time will be followed up by another interest rate hike next Month.

The report also showed a strong demand for iron ore and coal commodities which prompted the RBA to increase the rates twice in a row despite the fact that the rates remained the same to move towards normal levels.

RBA also said that Australia's terms of trade, the ratio of export prices to import prices this year is stronger than what was predicted last February.

The increase in interest rates meant that the world economy would generate output growth "close to trend over the next few years."

Growth for the domestic economy was anticipated at around trend, at 3.5 per cent, whereas inflation was expected at 2.5 per cent for this year.

The board members of RBA also agreed that there is a possibility of another rate increase in the next months since lending rates are still below average.

Meanwhile, the National Australia Bank comments that the minutes released today were coherent with its business surveys.