RBA in no hurry on another rate cut

Borrowers may have to wait a little longer for further interest rate relief after the Reserve Bank indicated it was in no hurry to deliver more cuts.

The Reserve board's minutes for its meeting this month show that it was a clear-cut decision to leave the official cash rate on hold at 3.5 per cent.

Rates have been slashed 1.25 percentage points since November, largely in response to the international economic turmoil hurting consumer sentiment and the housing market.

The minutes, released yesterday, said the board felt there was still a "substantial risk" Europe could deteriorate further and spill over into other economies, despite fresh elections breaking the political deadlock in Greece and a bailout for Spanish banks.

Board members thought it was best to leave rates unchanged, saying "there were recent signs that the domestic economy had a little more momentum than had earlier been indicated".