The Reserve Bank of Australia said the rate cut action early this month was intended to support demand, while inflation outcomes were expected to be consistent with the target.
The Australian central bank said the lower exchange rate is needed to achieve balanced growth and further action on rates would be initiated only after closely watching house price developments.
"There was considerable uncertainty around the timing and extent of the expected increase in household consumption growth and non-mining business investment," the bank said in minutes published Tuesday.
The outlook for the Chinese property market and its implications for Chinese demand for commodities was one area of uncertainty, the minutes showed.
"An improvement in the appetite for businesses to take on risk had the potential, should it occur, to lead to much stronger growth in non-mining business investment than currently forecast," it said.
The RBA Board cut the cash rate by a quarter point to 2.25 percent at its first meeting of the year. The rate had been maintained at 2.50 percent since August 2013.
Policymakers debated whether to lower the key rate at the February meeting or to postpone it until March.
The Board finally decided to act at the February meeting itself as it gives the opportunity of early additional communication in the forthcoming Statement on Monetary Policy.
These minutes, on balance, cast more doubt on a follow up move in March, Bill Evans at Westpac Institutional Bank said. The economist saw considerable scope for the bank to ease further, and said the best policy is to maintain downward pressure on the Australian dollar.
Members also said a lower exchange rate was likely to be required to achieve balanced growth in the economy.
Ben Jarman at J.P. Morgan noted that the language in the minutes is carefully crafted so as not to say that the currency has yet done enough. The economist expects the next rate cut to come in May.
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