Australia's central bank leaves interest rates on hold

The Reserve Bank of Australia (RBA) has left Australia's official cash rate on hold at the record low 2 percent for the third straight month.

RBA governor Glenn Stevens appeared upbeat talking about the Australian economy, toning down the rhetoric on the need for the Australian dollar to fall.

"While the rate of growth has been somewhat below longer-term averages, it has been associated with somewhat stronger growth of employment and a steady rate of unemployment over the past year," Stevens said in a statement accompanying the decision.

The RBA has previously said the Australian dollar needed to depreciate, but on Tuesday simply noted that it has adjusted to significant falls in commodity prices.

The Australian dollar rose a quarter of a U.S. cent to 73.24 U. S. cents following the announcement.

An expected interest rate hike by the U.S. Federal Reserve later this year will also help the Australian economy, Stevens said.

The suspected September hike by the Federal Reserve would likely boost the U.S. dollar, pushing Australia's dollar further lower, making locally produced goods more competitive with outside imports. Endi