The Australian share market has closed higher after the Reserve Bank indicated the economy was moving slower than it earlier invisaged, increasing the chances of fresh interest rate cuts.

At the close on Friday, the benchmark S&P/ASX200 index was 9.2 points, or 0.16 per cent, higher at 5,820.8, while the broader All Ordinaries index was up 9.2 points, or 0.16 per cent, at 5,774.7, according to preliminary figures.

On the ASX 24, the March share price index futures contract was 10 points higher at 5,766, with 26,081 contracts traded.