The central bank has kept the cash rate at the record low of 2.75 per cent at its June board meeting, saying that recent rate cuts are helping the economy.

The Reserve Bank of Australia’s decision was not a surprise after the May cut and the Australian dollar’s five per cent fall since the last RBA board meeting.

The bank has cut the cash rate by two percentage points since November 2011.

In the statement accompanying the decision, RBA governor Glenn Stevens said the lower interest rates are helping sectors of the economy, such as household spending.

“The pace of borrowing has thus far remained relatively subdued, though recently there have been some signs of increased demand for finance by households,” Mr Stevens said on Tuesday.

“The board judged that the easier financial conditions now in place will contribute to a strengthening of growth over time.”

JP Morgan chief economist Stephen Walters said the RBA’s statement made it clear that the rate was appropriate for the time being.

“Which carries with it a sense the current stance should not be viewed as permanent, or even persistent,” he said.

“One of the RBA’s objectives here is to grease the wheels as the economy adjusts; officials will give the transition away from mining another nudge if that becomes necessary.”

Mr Walters said is expects the next reduction from the central bank will be late in 2013.

“A lower cash rate would help but there is no crazy rush at the moment,” he said.

Mr Stevens in the statement also noted that the Australian dollar had fallen below one US dollar since the May board meeting but said it was still high considering the recent decline in commodity prices.

HSBC Australia chief economist Paul Bloxham said the RBA’s statement made it clear it was still worried about the relatively high value of the Australian dollar.

He said the prospect of further rate cuts depended on how the currency fared over the next few months.

“As we expected, it was all about the currency. After delivering a rate cut last month and getting the additional support of a hefty Australian dollar depreciation the RBA did not feel the need to cut rates further today,” he said.

“I think the outlook for the cash rate is intertwined with the Aussie dollar.

“The RBA has reaffirmed its easing bias mostly as a reminder they still have ammunition to use in the current environment of currency wars.”