The Reserve Bank of Australia left the official target for its Official Cash Rate on hold at 3% after its monthly board meeting on Tuesday.
However, the bank left the way open for another rate cut if conditions worsen more than expected.
In a statement, the RBA said: "The board will monitor how economic and financial conditions unfold, and how they impinge on prospects for a sustainable recovery in economic activity."
A quarterly monetary policy statement will be issued on Friday.
