The Reserve Bank may have disappointed a few people, but it has kept the door open for an interest rate cut, possibly before the May budget.
While there was growing speculation the RBA could shift the cash rate lower at Tuesday's monthly board meeting, it stood firm and kept its key rate at a record low 2.25 per cent.
Governor Glenn Stevens said the board judged it was appropriate to hold rates steady for the time being.
"Further easing of policy may be appropriate over the period ahead," he said in a statement.
Commonwealth Securities chief economist Craig James says while the RBA wants the economy to grow faster, there is no rush to add further stimulus.
"It must be confident another rate cut would do some good, not harm the economy," Mr James said.
If the central bank decides to cut the cash rate at its May 5 board meeting, as many economists believe, it will be putting a lot of faith in the Abbott government not to upset confidence again with another tough budget.
Treasurer Joe Hockey will hand down his second budget on May 12.
The central bank has yet to get a full set of monthly economic figures that support its decision to cut the cash rate in February.
However, lower rates appear to be working to a degree. February retail sales rose by a stronger-than-expected 0.7 per cent to more than $24 billion for the first time.
Other figures in recent days have also shown a further strengthening in the housing market, particularly in Sydney.
But the Housing Industry Association believes the home building sector more generally would have wanted the certainty of lower interest rates now.
Chief economist Harley Dale says given the RBA has clearly signalled it intends to undertake a further interest rate cut, "it should just get on and do it".
That said, he recognises that rate cuts are no panacea for improving Australia's economic health.
"Governments need to step up to the economic reform plate," Dr Dale said.
The prospect of high unemployment lingering for a while yet is also a worry for the RBA, and it would have been disappointed to see the first drop in job advertisements - by 1.4 per cent in March - in almost a year.
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