The Governor of the Reserve Bank of Australia says the bank is unlikely to reverse course and raise interest rates in the near future.
Governor Glenn Stevens told a parliamentary committee in Canberra on Monday that it would take something "quite surprising" to reverse a downward trend in interest rates.
The RBA last week cut its official cash rate to 7% from 7.25% - its first reduction in nearly seven years.
The decision followed 12 consecutive rate increases since May 2002.
However, the bank still expecting the consumer price index to rise further to an annual rate of inflation of 5% - well outside the RBA's target band of 2% - 3% inflation.
