The Reserve Bank of Australia has left the cash rate on hold at 2.5%.
The announcement follows the RBA’s decision to cut interest rates by 25 basis points in August.
“In Australia, the economy has been growing a bit below trend over the past year. This is expected to continue in the near term as the economy adjusts to lower levels of mining investment.,” RBA governor Glenn Stevens said in a statement.
“The unemployment rate has edged higher. Inflation has been consistent with the medium-term target.”
The RBA acknowledged that the Australian dollar has depreciated by about 15% since early April, but still remains at a high level by historical standards.
“It is possible that the exchange rate will depreciate further over time, which would help to foster a rebalancing of growth in the economy,” he said.