SYDNEY, Oct. 15 (Xinhua) -- The Reserve Bank of Australia said on Tuesday that it should neither rule out further rate cuts, nor signal an imminent intention to reduce rates.
In the minutes of its October board meeting, released on Tuesday, the bank said "given the substantial degree of policy stimulus that had been imparted, it would be prudent to leave the cash rate at the existing low level while continuing to gauge the effects."
"Members agreed that the bank should again neither close off the possibility of reducing rates further nor signal an imminent intention to reduce them."
The central bank made the point clear in the minutes by repeating the key sentence in its September minutes.
The bank last cut the cash rate in August by 25 basis points to a record low of 2.5 percent.
It said Australian home prices had increased and leading indicators pointed to a pick-up in dwelling investment over the period ahead.
"While credit growth remained moderate, there were signs of an increased appetite for borrowing, most notably among investors."
The central bank said international economic conditions had improved recently, with the Chinese economy getting a bit stronger than earlier in the year.
"The data for the global economy had been a bit more positive of late and broadly consistent with growth of Australia's major trading partners remaining around its long-term average," the bank said.
"Overall indications were that the Chinese economy was growing at a rate consistent with the government's target of 7.5 percent."
The central bank said the Australian economy had been growing at a little below-trend pace, with business investment, especially in the mining investment, staying subdued.