Australia's central bank saw room for faster economic growth when it cut interest rates to record lows earlier this month, predicting inflation would still remain below target for another two years or more.
The Reserve Bank of Australia (RBA) cut its cash rate by a quarter point to 1.5 percent, the second easing this year, as it sought to defend the economy from creeping deflation and restrain a buoyant currency.
"Members noted that the recent CPI data had confirmed that inflation was likely to remain low for some time," minutes of the Aug. 2 meeting showed.
"They also noted that while prospects for growth were positive, there was room for stronger growth, which could be assisted by lower interest rates."
The central bank also had one eye on the Australian dollar which has stayed firmer than desired for much of this year, hampering the economy's shift away from mining-driven growth.