RBA keeps cash rate steady for March

The RBA's decision is in line with the expectations of the market, with BT Financial Group's chief economist, Chris Caton, indicating that the central bank had "no reason to do anything else".

AMP Capital's Shane Oliver also predicted that rates would remain on hold, pointing out that the Central bank is "basically in wait and see mode" regarding the jobs market and the potential impact of global financial turmoil.

"Recent Reserve Bank commentary suggests a degree of comfort with the current level for the cash rate and while it retains an easing bias not enough has changed to suggest it is about to act on it," Mr Oliver said.

St George Bank senior economist Janu Chan, also predicted the cash rate would remain on hold, for reasons similar to those expressed by Mr Oliver.

"The Reserve Bank is in a wait and see stance. Low inflation and global uncertainty keeps the possibility of a rate cut alive, but it won't feel the need to while the labour market is performing quite well.