Slow rate of cuts puts squeeze on business, households

Earlier rate cuts have not been flowing though to actual spending habits. (Bianca De Marchi/AAP PHOTOS)

A wait of at least five weeks until further interest rate relief is expected to keep the pressure on retailers and other consumer-facing businesses keen for spending to pick up.

In a move that caught markets and most economists by surprise, the Reserve Bank of Australia's board kept interest rates on hold at 3.85 per cent on Tuesday.