The Reserve Bank of Australia (RBA) held interest rates steady at record low 1.5 percent on Tuesday, as expected, and appeared to signal it would remain on hold for some time.
The RBA said that it expected the economy Down Under would grow around 3 percent annually for "the next couple of years" and that inflation would pick up to above its 2 percent target over the course of this year.
"There is no longer an expectation of further monetary easing in other major economies," the statement on Tuesday said. "The board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time."
Analysts read that as a signal the central bank wouldn't be cutting rates anytime soon.
"This is very clearly a message from a central bank that does not want to cut interest rates any further," Paul Bloxham, chief economist for Australia and New Zealand at HSBC, told CNBC's "Street Signs" on Tuesday after the decision."
"We think the RBA is unlikely to cut interest rates any further and indeed, we think the next move for the RBA is more likely to be up than down, although not until 2018," he said.
Expectations interest rates were at their nadir would likely support the Australian dollar, which climbed as high as $0.7675 after the decision, compared with around as low as $0.7637 just before the announcement.
The decision to remain on hold came even as inflation remained sluggish. For the October-to-December quarter, data released in late January showed inflation Down Under was 1.5 percent on-year, slightly lower than expected, and still below the central bank's 2 percent target..