Markets have pushed out their expectations for the first cut to the official interest rate beyond the next federal election, as economists warn the reductions could be shallow because of inflationary pressure caused by a surge in government spending.

Announcing the cash rate had been left on hold at 4.35 per cent, RBA governor Michele Bullock on Tuesday urged federal and state governments not to stoke inflation with big-spending election promises and warned another interest rate rise was still a possibility.