The Reserve Bank of Australia (RBA) kept its interest rate unchanged at 2.00% on Tuesday. This decision was expected by analysts.
The RBA Governor Glenn Stevens said that the board' decision was reasonable "for continued growth in the economy, with inflation close to target".
He pointed out that further interest rate cut is possible.
"Continued low inflation would provide scope for easier policy, should that be appropriate to lend support to demand," the RBA governor said.
But Stevens noted that the next central bank's decision would depend on the incoming economic data.
The RBA governor said that the global economy continued to grow.
Stevens also said that the growth in the non-mining parts of the Australian economy strengthened in 2015, while the labour market improved.
The RBA governor also said that consumer price inflation remained "quite low", adding that the monetary policy should be accommodative.
Stevens noted that the Australian dollar was adjusting to the evolving economic outlook.