Greg Jericho, Chief Economist at The Australia Institute, describes the decision as "very cruel", ensuring more pain for those struggling with high mortgage repayments and more job losses.
He says all the key economic data supported another interest rate cut, which would have given them much-needed relief after three years of pain.
"The Reserve Bank has once again chosen to be content with rising unemployment," said Greg Jericho, Chief Economist at The Australia Institute.
"While there have been some signs of improved household spending, the major reason for the increase has been the recent interest rate cuts, rather than an underlying strength in the economy.
"The last recent GDP figures showed the economy still growing at barely half the long-term average, while unemployment has been rising steadily for all of this year.
"The opportunity to lock in unemployment at 4% is fast disappearing due to the Reserve Bank believing there needs to be more people unemployed in order to keep inflation below 3%.
"For those Australians forced to live in poverty on Jobseeker, this is a very cruel decision."
