The Reserve Bank of Australia maintained a steady cash rate of 4.1% following the initial meeting of a newly formed Monetary Policy Board, which is currently awaiting more information to ensure 100% confidence, Westpac said in a Tuesday note.

The RBA board remains focused on domestic data flow and has not changed its inflation outlook yet, with the RBA Governor Bullock confirming a rate cut was not explicitly considered at the meeting and that holding the cash rate steady was the consensus view.

The post-meeting statement acknowledged inflation's return to the target range but also suggested a high bar for further rate cuts.

However, Westpac anticipates further rate cuts, likely in May, when the RBA may report another "pleasant surprise" on inflation.