AAP

Federal opposition treasury spokesman Malcolm Turnbull says he does not expect the Reserve Bank of Australia (RBA) will be able to cut interest rates yet.

But he said that did not represent a change in his view that rates should not have been hiked in March.

In February, before the last official interest rate rise in March, Mr Turnbull said the central bank "should stay their hand" and wait to see how international developments turn out before raising rates again.

"There's a difference between saying you shouldn't raise the rate and then saying you should cut it," Mr Turnbull told Sky News.

"The fact is the rate is where it is now."

He said monetary policy had tightened and there had been significant increases in interest rates because retail banks' cost of funds had also increased.

"I don't think there is any need at the moment to increase the rate," he said.

"We are starting to see signs of a slowdown in economic activity, a big drop in business confidence and consumer confidence, which of course is a leading indicator.

"So there are signs that the economy is slowing, but I don't think you expect the bank to cut rates quite yet."

The RBA left its key official cash rate unchanged for a second consecutive month after Tuesday's monthly board meeting, keeping the rate at a 12-year high of 7.25 per cent.