The bank’s head of economics, Gareth Aird, said the economic data released since the last meeting, when the board lifted rates by .25 per cent, did not support a further increase.

On top of that, the bank said the Federal Budget also did not add to inflation, which is the key issue for the RBA.

“We currently ascribe a 90 per cent chance to no change to the cash rate in June and a 10 per cent probability to a 25 basis point increase to 4.10 per cent. We consider the risk of any other move immaterial,” Aird said.

He said the inflation figures for April, which would be released next week, would have to much higher than expectations before the bank consider the June RBA board meeting “to be live”.

“Our central scenario puts the current 3.85 per cent as the peak in the cash rate while the near term risk sits with another rate hike. July or August are more likely to be the next potential meetings of a move higher in the cash rates.

“We continue to expect 125 basis points (1.25 per cent) of rate cuts by the end of 2024 what would take the cash rate to 2.6 per cent _ a more neutral setting.”

The Australian housing market continued to show a surprising resilience in the wake of 11 rate increases in the past year.

CoreLogic said house prices in four capitals, including Brisbane, have lifted off the lows recorded in February.

In Brisbane, house prices have risen 1 per cent in the past month. Auction clearance rates nationally were at 70 per cent and volumes of houses on the market were slowly rising.

“Considering housing affordability measures remain stretched such a strong growth rate is surprising and probably unsustainable,” CoreLogic said.

The company said the expectation of increased immigration levels combined the small number of houses available could create a sense of urgency in the market.

“Demonstrating an ability to service a loan is going to be one of the biggest hurdles that prospective buyers will face this year,” it said.