The Reserve Bank of Australia (RBA), which has kept its rate steady since August 2013, also maintained its view from last month that economic growth is moderate due to the significant decline in investment in the resource sector while other areas of demand are expanding.
But overall, the RBA still expects Australia's economy to grow a "little below trend for the next several quarters."
The RBA also repeated its view that the Australian dollar, known as the aussie, remains above its fundamental value but added that a "lower exchange rate is likely to be needed to achieve a balanced growth in the economy," a change to its statements in recent months when it said that the current level was offering less assistance i achieving balanced growth.
After trading above parity to the U.S. dollar in 2011 and 2012 - and hitting a high of almost 1.10 to the dollar in July 2011 - the aussie's trend changed in April 2013 when the RBA cut its rate. Since then it has been depreciating steadily, hitting 0.846 to the U.S. dollar today, down 5 percent this year.
Comments by RBA Deputy Governor Philip Lowe last week about the benefits of a weaker aussie for the country's economy were seen by some observers as a sign the RBA could cut rates today. But most economists expected the RBA to maintain its rates today.
Australia's headline inflation rate eased to 2.3 percent in the third quarter from 3.0 percent in the previous quarter.
The country's Gross Domestic Product expanded by 0.5 percent in second quarter from the first quarter for annual growth of 3.1 percent, down from 3.5 percent in the first quarter but up from 2.7 in the fourth quarter of 2013 and 2.3 percent in the third quarter of 2013.
The Reserve Bank of Australia issued the following statement by its governor, Glenn Stevens:
"At its meeting today, the Board decided to leave the cash rate unchanged at .