Reserve Bank governor Glenn Stevens has opted to sit on the sidelines during the election campaign, keeping the cash rate at a record-low 1.75 per cent.
The decision at Tuesday's monthly board meeting came as little surprise in light of last week's strong economic growth figures, data that has helped lift consumer confidence to the highest level in over two years.
Mr Stevens said having cut the cash rate in May, the board judged that holding policy unchanged would be consistent with sustainable growth and inflation returning to target over time.
New figures suggest consumers have thrown off any anxiety over the election campaign for now and instead focused on the latest growth figures showing an annual pace of 3.1 per cent, the fastest in over three years.
The ANZ-Roy Morgan consumer confidence index jumped 3.2 per cent in the past week, rebounding from the 2.2 per cent drop over the previous seven days.
"We expect that confidence will remain sensitive to developments in the domestic economic data, as well as the evolution of the political debate in the lead-up to the July election," ANZ head of economics Felicity Emmett said.
Former prime minister John Howard joined that debate as he campaigned for the Liberal party in Adelaide, saying Australia is holding up well during a time of fairly unpredictable behaviour in the global economy.
"The growth figures last week were quite extraordinary," he told reporters.
He said in any election there is nothing more important as managing the economy.
On that score, the latest Essential survey found 36 per cent of respondents favouring Liberals as better handling the economy compared with 22 per cent backing Labor.
Finance Minister Mathias Cormann believes Labor would put Australia's triple-A credit rating at risk should it win the July 2 election because it has given up funding election promises in the four-year budget timeframe.
"That means under Labor the deficit would be bigger over the next four years," Senator Cormann told reporters in Canberra.
But Opposition Leader Bill Shorten says the rating is already under threat from the Turnbull government with the budget deficit tripling.
That's why he was opposing the government's planned $50 billion worth of business tax cuts.
"This government hasn't ... proposed alternative methods of replacing that revenue," Mr Shorten told Adelaide's 5AA radio.
Treasurer Scott Morrison said the Labor leader was just playing "pure politics" as he launched a new campaign ad showing Mr Shorten in an interview in March 2012 saying the reduction in the company tax rate since the mid-1980s has been part of Australia's economic success.
However, the Essential poll shows just 28 per cent of voters support the tax cuts, while 45 per cent are against.
