The Reserve Bank of Australia (RBA) kept the cash rate on hold at 1.5 percent, in the first monetary policy decision overseen by new Governor Philip Lowe.
In a statement released after the decision, Lowe—who was deputy governor before replacing Glenn Stevens in the top role—said that the Australian economy was continuing to grow at a moderate rate.
"The large decline in mining investment is being offset by growth in other areas, including residential construction, public demand and exports. Household consumption has been growing at a reasonable pace, but appears to have slowed a little recently," he said.
Business and household sentiment were above average, while labor market indicators were mixed and inflation remained quite low, he noted.
Australia, the world's twelfth-largest economy, targets an inflation rate of 2-3 percent on average over the economic cycle.
The global economy meanwhile was continuing to grow, albeit at a lower than average pace, and China was supporting growth, according to the statement, while commodity prices had risen and financial markets were functioning effectively.