For the third month in a row, the RBA has kept interest rates on hold at the record low of 2.5%.
In a statement, RBA Governor Glenn Stevens said economic growth in Australia this year was a bit below trend and unemployment was still increasing.
“This is likely to persist in the near term, as the economy adjusts to lower levels of mining investment,” said Stevens.
Yet the Board did acknowledge positive sings in other areas of the economy.
“There has been an improvement in indicators of household and business sentiment recently, but it is still too soon to judge how persistent this will be,” Stevens said.
The Board said that even though the Australian dollar has fallen from its level earlier in the year, it is still “uncomfortably high”.
“A lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy,” Stevens said.
“The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target.”