The Reserve Bank of Australia (RBA) kept unchanged its interest rate at 2.00% on Tuesday. This decision was expected by analysts.
The RBA said that the decision was appropriate after the interest rate cut in June.
The central bank noted that the Australian dollar declined against a US dollar and against a basket of currencies, and the further interest rate cut is "both likely and necessary" as the Australian dollar fell due to lower key commodity prices.
The RBA also said that global economy grew moderately, and "global financial conditions remain very accommodative."
The RBA cut its interest rate to 2.00% from 2.25% in May.