As expected, the Reserve Bank left its cash rate on hold yesterday at 4.75%, and didn't really tell us any more about the health of the economy than we already knew.

In fact yesterday's trade figures (a surprise deficit in February, thanks to a big rise in oil imports) and solid car sales for March, told us a bit more about where the economy is than did the post board meeting statement which was a re-run of the March statement.

"At today's meeting, the Board judged that the current mildly restrictive stance of monetary policy remained appropriate in view of the general macroeconomic outlook," the post-meeting statement from Governor Glenn Stevens concluded yesterday.

The bank again told the market that it will look through the expected high inflation figures for the March quarter due to be released later this month (and for the June quarter as well).

"Inflation is consistent with the medium-term objective of monetary policy, having declined significantly from its peak in 2008.

"These moderate outcomes are being assisted by the high level of the exchange rate, the earlier decline in wages growth and strong competition in some key markets, which have worked to offset large rises in utilities prices.

"Production losses due to weather are temporarily raising prices for some agricultural produce, which will boost the March quarter CPI, but these prices should fall back later in the year.

"Overall, looking through these temporary effects, the Bank expects that inflation over the year ahead will continue to be consistent with the 2-3