The Reserve Bank of Australia (RBA) has kept the official cash rate on hold at 2 per cent.
The decision came after two rate cuts already this year in February and again in May.
Explaining today’s decision the central bank said monetary policy needs to be accommodative.
The bank noted key commodity prices have been weak but puts this down to increasing supply.
While rising Sydney house prices were highlighted the RBA says trends have been more varied in a number of other cities.
The likelihood of the US Federal Reserve raising rates later this year was also mentioned but it was qualified with a suggestion that other countries are still pushing rates lower.
Looking at the Australian dollar the bank recognises that it has fallen against the greenback and that it is both likely and necessary that it will fall further.
But for now the RBA says the current cash rate is appropriate and it will assess conditions in the period aheadbefore making any changes.
