The Reserve Bank of Australia (RBA) has kept the official cash 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 noted key commodity prices have been weak but puts this down to increasing supply.
Emphasis was placed on the likelihood of the US Federal Reserve raising rates later this year but it was qualified with a suggestion that other countries are still pushing rates lower.
While heat in the housing market was mentioned the RBA says trends have been more varied across various cities.
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.
The Aussie dollar was quick to react with an immediate surge higher against the greenback, pushing above $US0.73.
