The 31 March-1 April meeting marked the first since the RBA board dropped the axe in February, trimming the cash rate by 25 basis points from its previous 12-year peak.

Since then, most mortgage lenders have passed on the cut to their variable-rate home loans, granting borrowers their first relief in more than four years.

The Tuesday announcement was hardly a surprise to anybody, considering no major movement suggests another rate cut would be warranted.

Echoing its previous statement, the board said it would require more evidence that inflation is sustainably returning to target, noting its decisions remain guided by incoming data and its assessment of risks.

"In doing so, it will pay close attention to developments in the global economy and financial markets, trends in domestic demand, and the outlook for inflation and the labour market," the RBA board's post-meeting statement read.

Australia's headline inflation rate continues to ease, slowing to 2.4% in the 12 months to February, according to the Australian Bureau of Statistics.

Underlying inflation – which strips out volatile or temporary price changes – declined to 2.7% in February, down from 2.8% in January.

"The continued decline in underlying inflation is welcome, but there are nevertheless risks on both sides and the Board is cautious about the outlook," the board said.

The RBA flagged "notable uncertainties" surrounding domestic economic activity and inflation, particularly amid the signs of recovering private domestic demand, in explaining its latest decision.

Governor Michele Bullock and her rate-setting committee also also briefly acknowledged concerns over international uncertainty ahead of former US President Donald Trump's expected tariff announcement on 2 April.

More notably, the timing of the April decision places the RBA in a neutral policy stance ahead of the 3 May federal election.

As an independent body, a rate cut so close to the federal election could have been viewed as a de facto boost to the government's campaign.

Attention now turns to the RBA's next meeting in May, where the board will have the latest inflation data due on 30 April.

Image courtesy of the Reserve Bank of Australia

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