The Reserve Bank of Australia (RBA) released its minutes from April monetary policy meeting on Tuesday. The RBA said that further interest rate cut might be needed "to foster sustainable growth in demand and inflation consistent with the target".

The RBA Board members want to wait for the new inflation data whether the Australian economy has responded to the interest rate cut in February.

The central bank noted that the Australian economy continue to expand below the trend in the December quarter and into the first quarter of 2015 despite the lower Australian dollar.

Household consumption had increased in the December quarter due to low interest rates and rising household wealth, according to the RBA.

The central bank said that "labour market conditions were likely to remain subdued".

The RBA kept its interest rate unchanged at 2.25% on April 07.