Borrowers hoping for cheaper mortgages needn't give up hope just yet, with the Reserve Bank indicating another rate cut is a very firm possibility.
The central bank defied expectations by keeping rates on hold at 2.25 per cent, deeming it appropriate to "hold interest rates steady for the time being" following February's 25 basis point cut.
The surprise decision temporarily propelled the Australian dollar almost one US cent higher and knocked the share market of its run towards levels not seen in more than seven years.
The majority of economists surveyed by AAP had expected the RBA to slash the cash rate to a new record low of two per cent, based in part on its tendency to deliver two rate cuts in a row.
RBA governor Glenn Stevens made it clear that another rate cut could be on the cards.
"Further easing of policy may be appropriate over the period ahead, in order to foster sustainable growth in demand and inflation consistent with the target," he said.
"The board will further assess the case for such action at forthcoming meetings."
David de Garis, senior economist at National Australia Bank - the only one of the big four banks to predict Tuesday's decision - said that was a clear signal the RBA is considering another cut.
"It's very much keeping the door ajar to further easing if they wish to go down that road in the months ahead," he said.
NAB expects a rate cut in May.
ANZ head of Australian economics Justin Fabo agreed another cut is likely, but was surprised it didn't happen on Tuesday.
"I can't really rationalise it myself, because they've gone into another easing phase ... and you don't just do 25 basis points because by their own admission that doesn't do much," he said.
An unchanged rate cut is even more surprising after last week's shockingly weak business investment figures, Mr Fabo said.
"Even if you take a really optimistic view of what it was telling you, it was pretty bad," he said.
"They know GDP tomorrow is going to be pretty soft, so putting all that together, it's surprising they didn't go today."
TD Securities head of Asia-Pacific research Annette Beacher said concerns over rising property prices may have driven the decision, with the RBA making specific reference to strong price rises in Sydney, as well as strong growth in lending to property investors.
Figures on Monday showed Sydney property prices had soared almost 14 per cent in the year to February.
"We can only surmise that the surge in house prices and auction clearance rates stayed the RBA's hand today, providing an offset to what was a dismal capex report last week and the surprise jump in the unemployment rate to 6.4 per cent a few weeks ago," she said.
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