The Reserve Bank of Australia (RBA) has moved in line with expectations and kept the official cash rate at 2.5 per cent at its December meeting.
The last rate decision of the year is the sixteenth straight month Australia’s central bank has left rates unchanged at a record low.
The accompanying statement noted growth in the global economy continuing at a moderate pace with China's growth in line with policymakers' objectives.
RBA governor Glenn Stevens has highlighted significant price declines among commodity prices which he says reflects softer demand and increased supply.
Mr Stevens has also noted the falling Australian dollar but says it remains above most estimates of its fundamental value.
Looking ahead Mr Stevens says a lower exchange rate is likely to be needed to achieve balanced growth in the economy.
The RBA has again affirmed its neutral policy bias, claiming the most prudent course is likely to be a period of stability in interest rates.
