The Minutes from the RBA's April 2011 meeting show the Reserve Bank sees no likely need to raise official cash rates in the near term.
While the bank acknowledged that natural disasters in Australia over summer would slow down GDP in March quarter and also raise the inflation, the board emphasised it is looking through these short-term disruptions to the medium-term picture.
RBA is continuing to weigh up the balance between Australia's mining boom, weak household spending and continuing international financial problems.
While the disaster in Japan was predicted to slow Australian exports to that nation in the short-term, the bank is expecting increased demand for Australia's commodities once rebuilding gets under way.
As interest rates on both housing and business loans were a little above average levels in Australia, members of the board therefore did not see a case to change the cash rate.
Given the outlook for the economy, and in particular the high level of the terms of trade and the prospective further large increase in investment, members considered that this stance remained appropriate so as to ensure that the medium-term inflation outlook remained consistent with the target.