The rate decision came just hours after data from the Australian Bureau of Statistics (ABS) showed net exports will take a bigger bite out of second quarter gross domestic product (GDP) than initially expected.
But this is mostly offset by a surprisingly solid rise in government spending and investment. According to the ABS, net exports should detract 0.6 percentage points from GDP as export volumes retraced after the recent boom. The market consensus had been for a smaller 0.3 percent detraction.
"The slowdown in China and the fall-out in Asia should continue to weigh on export volumes," analysts at Citi wrote in a note to clients.
In contrast, government consumption rose 2.2 percent, driven by defence spending, while investment jumped 4.0 percent.
The strong public sector demand could have saved GDP from turning negative in the second quarter, a few analysts said. The GDP report is due on Wednesday.
The economy is expected to grow a pedestrian 0.4 percent on the quarter, taking the annual rate down to 2.2 percent from 2.3 percent - the slowest since third-quarter 2013. Such an outcome would come as no surprise to the RBA, which is forecasting GDP growth of between 2 and 3 percent over the year to June 2016.