The threat of an immediate interest rate rise by the Reserve Bank of Australia has receded, following weaker than expected inflation numbers earlier this week, according to analysts.

A Bloomberg survey of 26 financial market economists, following the consumer price index (CPI) result, found that none saw any likelihood of a rise in May, while only one believed of such a possibility before the end of the September quarter.

The RBA's preferred CPI measure, the trimmed mean CPI, lifted only by 0.5 per cent in the first quarter, while year on year core inflation fell to 2.7 per cent from 2.9 per cent.

"The CPI data has ended the debate over interest rates rises in the near term, despite some signs that house prices are again re-accelerating and rents are at significant risk of a sharp acceleration," a Goldman Sach JBWere broker report said.

Analysts from Credit Suisse suggested that continuing worries over inflationary pressure meant the RBA still would continue its tightening bias over the medium term.
 
"Forward looking indicators suggest that price pressures are elevated," a Credit Suisse report said.

"However, for some time, actual inflation outcomes have fallen short of what these indicators would suggest."

A tight labour market could mean strong wage inflation to come, although Australian dollar appreciation and stronger productivity growth could help to contain inflationary pressures going forward, the report said.

"A tightening bias is needed to anchor inflation expectations at this stage of the economic cycle," the report said.

However, five economists said they expected a rate rise by the December quarter, while two forecast a rate cut.