Borrowers will have to wait until at least November for more mortgage relief, but hotter-than-expected inflation and an enduringly robust labour market have raised the prospect the central bank might have delivered its last rate cut.
Tuesday's decision leaves the cash rate at 3.6 per cent after 75 basis points of cuts since February.
In its statement, the RBA board said labour market conditions had been broadly steady, an update from its August statement when it said the labour market was easing.
The central bank revealed it was sensitive to the risk that inflation could overshoot its latest forecasts.
"On the domestic side, stronger-than-expected data on growth and inflation may indicate that households have become more comfortable consuming as real incomes and wealth rise," it said.
"If this continues, it may make it easier for businesses to pass on cost increases and lead to more demand for labour.
"With signs that private demand is recovering, indications that inflation may be persistent in some areas and labour market conditions overall remaining stable, the board decided that it was appropriate to maintain the cash rate at its current level at this meeting."
The central bank also remains alert to global uncertainty, with Donald Trump's tariffs still causing havoc, but monetary policy was well-placed to respond decisively to international developments.
Treasurer Jim Chalmers said while millions of Australians would have been hoping for more rate relief, the decision was expected.
"Rates have already come down three times this year and that's a good thing," he said.
"This progress comes at the same time as we've seen inflation tick up in parts of the world including the United States, Canada and New Zealand and remain stubbornly high in places like the United Kingdom."
Monthly inflation jumped to three per cent in August, snuffing out faint hopes for a rate cut in September.
Markets significantly repriced the odds for further rate reductions after last week's consumer price index print, with only one more cut priced in this cycle before the RBA's announcement.
But Tim Lawless, research director at property analytics firm Cotality, said the central bank was unlikely to read too deeply into the volatile monthly figure.
The more reliable quarterly data due out in October will be more decisive for the RBA's next meeting in November.
A benign reading could clear the way for more rate relief and boost home prices, Mr Lawless said.
"A further cut to interest rates is likely to provide additional support to housing demand from an increase in borrowing capacity and serviceability assessments, but also via higher consumer sentiment," he said.
All nine board members voted in favour of a hold.
Harry Murphy Cruise, Head of Economic Research and Global Trade for Oxford Economics Australia, said accelerating household spending indicated that previous rate cuts were working through the economy more quickly than anticipated.
"Despite the recent jump, we remain confident the RBA has effectively won its fight against inflation," he said.
Market reaction to the decision was muted, given how widely it was expected, but the Australian dollar and bond yields edged up after 2.30pm.
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