NAB group chief economist Alan Oster said that with the non-mining sector starting to improve, there is no reason for the central bank to do anything at this stage.

“The Reserve Bank is in ‘sit and watch’ mode,” said Mr Oster.

HSBC's chief economist for Australia and New Zealand, Paul Bloxham, also expected the official cash rate to remain on hold.

“The economy is continuing to balance and the improvement in the labour market has made the Reserve Bank much more comfortable with the economy,” said Mr Bloxham.

According to UBS Investment Bank chief economist for Australia Scott Haslem, the Reserve Bank feels the economy is rebalancing moderately and there are signs of improvements coming through.

“The currency has also adjusted quite significantly, so I don’t think conditions are bad enough to cut what are already record low interest rates,” said Mr Haslem.