Prior to the rate announcement, My Housing Market chief economist Andrew Wilson predicted that the RBA would decide to cut the interest rate ahead of what is likely to be unprecedented fiscal stimulation announced in the budget tonight.

Mr Wilson said this would allow for “a two-pronged attack to restore the economy to growth”.

Bendigo head of economic and market research David Robertson correctly predicted that rates would remain on hold this month.

“The RBA appears ready to add further monetary support by cutting the official cash rate to 0.1 [of a percentage point], although they will probably wait until Cup day rather than federal budget day,” Mr Robertson said.

“Fiscal support will be more critical and effective than monetary, but the RBA are playing their part, including via more QE.”

IFM Investors chief economist Alex Joiner said while the RBA has been signalling that it is considering easing policy further in the near term, “on balance, it will likely wait until after the budget to do this”.

“It will be hoping that the fiscal largesse that is expected will be enough to prevent it from having to do anything,” he said.