The Reserve Bank of Australia left the official interest rate unchanged at 2.5% on Tuesday.
In a statement after a meeting of the RBA board, Governor Glenn Stevens said uncertainty remains about the strength of economic growth outside Australia's mining sector.
"There has been an improvement in indicators of household and business sentiment recently, but it is still unclear how persistent this will be," he said.
"Public spending is forecast to be quite weak."
Mr Stevens also said the value of the dollar remains "uncomfortably high".
"A lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy," the statement said.
Concern about ongoing uncertainty in the global economy has led the RBA to cut the cash rate steadily since November 2011, when it was 4.5%.
The ABC reports the most recent cut was in August, from 2.75% to 2.5%.
