Global woes to keep interest rates steady in July

Economists are tipping the Reserve Bank to leave monetary policy unchanged next Tuesday.

BORROWERS are set to be spared a rate rise for at least another month with economists tipping the central bank to leave monetary policy unchanged next Tuesday.

All 16 economists surveyed by AAP forecast the Reserve Bank will leave the overnight cash rate at 4.5 per cent for a second consecutive month following the board's meeting on Tuesday, July 6.

Concerns about sovereign debt in Europe and weak economic data in the US recently have sent jitters through financial markets because the recovery in the world economy is looking slower than previously expected.

RBC Capital Markets senior economist Su-Lin Ong said the Reserve Bank would stay on hold next week.

"It is a combination of the very uncertain global backdrop and increasing downside risk to global growth," Ms Ong said.