The Reserve Bank of Australia (RBA) has kept official interest on hold at 2.5 percent for the 16th month in a row making it the longest period of interest rate stability for almost 20 years.
RBA governor Glenn Stevens said economic indicators showed that growth in Australia would stay moderate despite a significant decline in resources sector investment spending.
"Overall, the bank still expects growth to be a little below trend for the next several quarters," Stevens said in a statement.
Stevens highlighted the falling Australian dollar, saying a lower dollar would be good for the economy.
"The Australian dollar remains above most estimates of its fundamental value, particularly given the significant declines in key commodity prices in recent months," he said.
"A lower exchange rate is likely to be needed to achieve balanced growth in the economy."