The Official Cash Rate (OCR) has remained at 5.5 percent, the Reserve Bank has announced.
Tuesday's decision comes as the Reserve Bank held the OCR at 5.5 percent for nearly a year, following months of aggressive tightening.
The OCR is reviewed seven times a year.
Before Wednesday's announcement, most experts predicted the OCR would remain at 5.5 percent.
But independent economist Cameron Bagrie said there was "always a chance it could go in either direction".
Increasing the OCR increases interest rates and helps bring inflation down.
Tuesday's decision comes as inflation fell to 4 percent in the March quarter and was expected to continue dipping throughout the year, although domestic consumer prices remained stubbornly high.
As well, unemployment has now risen to 4.3 percent with the Reserve Bank expecting it to hit 5.1 percent by the early 2025.
The next OCR update is on July 10.
