The Reserve Bank of Australia on Tuesday decided to retain its benchmark cash rate at record-low of 2.5 percent, in line with economists' expectations.
At the meeting, the Reserve Bank Board noted that the current setting of the monetary policy remained "appropriate".
The Board said it will "continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target."
In a statement, RBA Governor Glenn Stevens said Australian dollar rose recently, but is still about 10 percent below its level in April. A lower level of the currency than seen at present would assist in rebalancing growth in the economy, he said.
Stevens said the full effects of easing in monetary policy since late 2011 are still coming through, and will be for a while yet.
The economy has been growing a bit below trend over the past year and this is expected to continue in the near-term as the economy adjusts to lower levels of mining investment, Stevens noted.
For comments and feedback: editorial@rttnews.com