The Reserve Bank of Australia (RBA) has kept the official cash rate on hold at a record low of 2 per cent.
The decision to keep rates steady comes after the RBA cut rates in February and again in May.
Explaining today’s decision the central bank said monetary policy needs to be accommodative.
The bank noted prices for equities and commercial property have been supported by lower long-term interest rates.
While rising Sydney house prices were highlighted the RBA says trends have been more varied in a number of other cities.
The bank has advised it is working with other regulators to assess and contain risks that may arise from the housing market.
On the back of a falling Australian dollar compared to a rising US dollar the RBA has predicted further depreciation is likely and necessary.
But for now the RBA says the current cash rate is appropriate and it will assess conditions in the period ahead before making any changes.
