The Reserve Bank of Australia has kept the official cash rate on hold at a record low of 1.5 per cent for September after cutting interest rates at its August meeting by 25 basis points.
The RBA said the global economy is continuing to grow, but at a lower than average pace.
The central bank noted that commodity prices are above recent lows, but this follows very substantial declines over the past couple of years.
Australia's terms of trade also remain much lower than they had been in recent years.
The RBA also noted that inflation also remains quite low and given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.
Having eased monetary policy at its May and August meetings, the Board decided that keeping rates unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.
The Aussie dollar dropped marginally to $US0.7620 following the decision.
