In a surprise move the RESERVE BANK has kept interest rates ON HOLD despite a sluggish retail and housing sector

The Reserve Bank board has met for the first time this year and many economists had been widely expecting another interest rate cut

Instead the official cash rate has remained steady at 4-and-a-quarter per cent

Some analysts say the "wait and see" approach should not come as a surprise following rate cuts in November and December last year

Inflation remains under control, there are signs the US economy is turning around, while the situation in Europe is relatively steady

There has also been an increase in job advertisments, even though most positions are in the mining sector

The Australian dollar has risen on the back of the Reserve's decision, even though the bank has signalled it may still cut rates later this year