The Reserve Bank of Australia (RBA) kept interest rates on hold at 2.0% at its July meeting today.
The RBA last cut rates in May.
“Monetary policy needs to be accommodative,” RBA governor Glenn Stevens said in a statement accompanying the decision.
“Low interest rates are acting to support borrowing and spending.”
Stevens said despite the growing crisis in Greece the RBA had decided not to change rates.
“Despite fluctuations in markets associated with the respective developments in China and Greece, long-term borrowing rates for most sovereigns and creditworthy private borrowers remain remarkably low,” he said.
The Australian dollar fell to a six year low this week but the RBA warned it was likely to fall further.
“Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices,” Stevens said.