According to Reuters, interbank futures on Wednesday showed a 20 percent chance of a cut by July, compared with just over 50 percent before the data was released.
"This is clearly a disappointing outcome and substantially reduces the possibility of another rate cut from the RBA," said Shane Oliver, head of investment strategy and chief economist at AMP Capital.
Oliver told CNBC he did not see an imminent rate hike however.
"While the increase in inflation will concern the RBA it's not bad enough to bring on an imminent rate hike either," he said, adding that the 2.7 percent annual inflation rate was still in line with the RBA's inflation target and pointed out that excluding volatile items, like fruit and vegetables, inflation was just 0.6 percent.
AFEX Australia's Greene added that the RBA is now in a similar situation to the U.S. Federal Reserve and the Bank of England, in term of combating mixed signals from economic activity.
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"Certainly on that one number, a lot of people are getting excited and the RBA will be too. But it doesn't mean Australia is out of the woods," he said.
"I think central banks are a little bit confused as to where these figures are coming from but still they are mandated so they are doing what they need to," he added.
— By CNBC's Katie Holliday: Follow her on Twitter