Australia's central bank said there have been further signs that past cuts in interest rates are working to stimulate the economy, though it again would not rule out the chance of easing further if needed.
In minutes of the Dec. 3 policy meeting, the Reserve Bank of Australia (RBA) also said the local dollar is still painfully high despite the fact that it has weakened noticeably over the past month.
(Read more: No respite in sight for the battered Aussie)
The RBA left its cash rate unchanged at a record low 2.5 percent for a fourth month in December, having already cut by 225 basis points since late 2011. It holds its next policy meeting in February and markets are giving almost no chance of a cut.
"There had been further signs of the stimulatory effects of low interest rates, most notably in the housing market, and additional effects were still likely to be coming through," the RBA said.