Rate hopes fade, page-8

Sky news take the most extreme view of course.

"We still think that the next move from the RBA will be a cut rather than a hike, we know that the current cash rate is in restrictive territory, but we also think that activity will start to improve this year as well," said Catherine Birch, a senior economist at ANZ.

"You can't write off the possibility of the next move being a hike rather than a cut, but we think it's a low possibility at this stage."

AMP deputy chief economist Diana Mousina agrees that the data for the March quarter has effectively ruled out rate cuts in the coming months.

"This inflation data will certainly renew some of that debate around whether we actually need to see higher interest rates," Ms Mousina said.

"We don't think we will see a further rate hike from here, I just don't think it's necessary, but the quarterly inflation data does mean that the risk of a near-term rate cut has absolutely disappeared."