The Reserve Bank of Australia said the Australian dollar is still painfully high, despite the fact that it has weakened noticeably over the past month.
Minutes of the bank's last meeting said there have been further signs that past cuts in interest rates are working to stimulate the economy.
Nevertheless, it would not rule out the chance of easing further, if needed.
The Reserve Bank of Australia left the official cash rate unchanged at a record 2.5% for a fourth month in December, having already lowered it from 4.5% in November 2011.
