The Reserve Bank has held the official cash rate at a record low of 1.0 per cent.
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The Reserve Bank has held the cash rate at a record low 1.0 per cent as it gauges the effect of consecutive cuts in June and July.
Economists had widely expected the RBA to leave interest rates unchanged at Tuesday's August board meeting, although many still expect another cut before the end of 2019.
The RBA reduced rates by 0.25 percentage points in both June and July in a bid to help kick-start economic growth.
RBA governor Philip Lowe said for a second straight month the bank would adjust again "if needed", which in July was widely interpreted as the central bank adopting a short-term watching brief.
The Australian dollar spiked briefly after the central bank's announcement but settled to 67.83 US cents by 1445 AEST.
CommSec chief economist Craig James said rates were unlikely to rise again any time soon.
"Reserve Bank policymakers have again left the door open to further rate cuts 'if needed' - the latter two words also being used in the July interest rate decision," he said.
"The Reserve Bank hopes it has done enough so it is not called on to cut rates again. But the bank has made it clear that even if rates aren't cut, that rates will stay low for an 'extended period'. Inflation is not expected to be in the 2-3 per cent target band until 2021."
AMP Capital chief economist Shane Oliver said the bank had an easing bias.
"For now the RBA is in wait and see mode - basically waiting to see what sort of boost to growth the rate cuts of June and July and the federal government's tax cuts for low and middle income earners provide. Baring a shock to the economy this is likely to remain the case for a few months," he said.
"However, while the rate cuts seen so far and the federal government's tax cuts will help, we see unemployment drifting up to around 5.5 per cent by year end in contrast to the RBA's expectation for a fall to around 5 per cent over the next couple of years.
"The stimulus to date won't be enough to get wages growth up and inflation back to target and so we expect the RBA to resume cutting rate later this year with 0.25 per cent cuts in each of November and February.
"Help from more fiscal stimulus and structural reforms is needed but this will take time to come through and impact the economy so the pressure remains on the RBA in the short term.
"And the escalating US/China trade war adds to this pressure to the extent that it threatens demand for Australian exports and business confidence locally."
