The Reserve Bank of Australia (RBA) has kept the official cash rate on hold at 2 per cent.
The decision was widely expected amid a period of consistent rates since the last cut in May.
Explaining today’s decision the central bank noted key commodity prices have been weak but puts this down to increasing supply.
Recent volatility in equity markets was blamed on developments in China but says global financial conditions remain accommodative.
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 other 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 pushing up to $US0.7142 on the news.
