The RBA is expected to keep the official cash rate on hold until at least August, having moved rates back to more "neutral levels".
According to minutes of the RBA's board meeting released yesterday, members of the board noted that past cash rate increases had been “passed through” to lending interest rates in full.
As a result, the board said that lending rates to both households and businesses were now around their average levels of the past decade.
The board also said that an easing in the housing market’s buoyancy contributed to the last rate halt.
“Most notably, auction clearance rates in May had been lower than the very high levels of earlier months,” the board minutes read.
“Growth in housing credit had slowed in April, after a decline in loan approvals over the prior six months.”
While the board said there was uncertainty around long term expansion, the board indicated it would take a flexible approach.
“For the near term, therefore, members judged that it was appropriate to leave the cash rate unchanged,” the minutes read.