RBA keeps rates on hold following mixed inflation data

"This will provide stability for borrowers," said Haynes.

"While inflation eased slightly in April, it remains above the RBA’s preferred target range. The RBA will need to see inflation on a downward trajectory before they consider any rate cuts," said Haynes.

Following three consecutive rate rises this year, Haynes said the average interest rate range for residential loans is currently sitting approximately between 5.9 per cent to 6.5 per cent, depending on the product and the borrowing profile.

"We are continuing to see strong refinancing activity. Many borrowers are reassessing their current rate and lender considering the consecutive rates hikes this year," he said.

"Reviewing your loan helps ensure it remains competitive and suited to your needs."

Economist Paul Eslake warned that monetary policy was clearly now in restrictive territory with headline inflation a bit lower than expected in April, and the labour market softening a bit more than expected.

"None of that rules out further rate increases at some point, but it does reduce the need for a 4th consecutive rise," said Eslake.

Eslake said the Reserve Bank could wait and see how the previous rate cuts flow through to the data. 

Bendigo Bank head of economics and market research David Robertson said while the RBA is maintaining its tightening bias, there was no need to increase the cash rate again this month after three consecutive hikes.

"The outlook remains at the mercy of developments in the Middle East and the oil price, but the next hike may not occur until around November," said Robertson.

AMP chief economist Dr Shane Oliver agreed that the three RBA hikes this year have given the RBA some breathing space to wait and gauge the initial impact of the hikes and how the oil supply shock impacts.

Softer data for consumer spending, jobs and house prices along with mixed inflation data for April supported the case for a pause on rates hikes for the June meeting, according to Oliver.