Whilst labour market conditions in the advanced economies have improved over the past year, growth in global industrial production and trade remains subdued, which is why the Reserve Bank of Australia has chosen to once again leave interest rates on hold, said Governor Philip Lowe.
Inflation remains below most central banks' targets, and commodity prices have risen over recent months, supporting a rise in Australia's terms of trade, he said.
The RBA considers the Australian economy to be growing at a moderate rate, with declines in mining investment being offset by growth in residential construction and exports. Household and business sentiment remains steady.
Mr Lowe said the RBA is confident that leaving the interest rate unchanged for the third straight month was supporting domestic demand and helping the traded sector."Taking account of the available information, and having eased monetary policy at its May and August meetings, the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time," he concluded.