The Reserve Bank of Australia kept the cash rate unchanged at 1.50% amid low inflation in the country.
The central bank said conditions in the global economy have improved in recent months and global trade and industrial production have picked up. The continued improvement contributed to higher commodity prices, which provided a boost to Australia's economy.
Inflation remained quite low, the central bank said, noting that it expects headline inflation to pick up over the course of 2017 to reach more than 2%, while the rise in underlying inflation is expected to be slightly more gradual amid subdued growth in labor costs.
The central bank said keeping the cash rate unchanged should support sustainable economic growth. However, an appreciating exchange rate could complicate the country's growth.