There had been speculation that the Reserve Bank of Australia would lower rates to zero or even into negative territory as a last-ditch effort to encourage people to invest instead of hoarding cash.

AKW Financial Services' Julian McLaren said there were "two sides to the coin" with the decision helping keep costs down for Riverina borrowers but maintaining low returns for savings.

"It's a prudent decision because we're not 100 per cent sure what the current state of the economy is, to be frank," he said.

"Lowering interest rates further may have no impact at all, because it only has an effect when people have the capacity to borrow more.

"If you're worried about your job, you're not going to borrow any more money, which would have stimulated the economy."

In a statement following a monthly board meeting on Tuesday, governor Philip Lowe said the Reserve Bank would not resume trying to raise rates until unemployment started to drop.

Mr Lowe said "the Australian economy is going through a very difficult period and is experiencing the biggest economic contraction since the 1930s" but noted that pandemic restrictions were lifting faster than anticipated.

"In April, total hours worked declined by an unprecedented 9 per cent ... household spending weakened very considerably and investment plans are being deferred or cancelled," he said.

"Notwithstanding these developments, it is possible that the depth of the downturn will be less than earlier expected."