The Reserve Bank of Australia maintained its key interest rate at a record low for the second straight month as widely expected by economists.

The policy board governed by Glenn Stevens decided to leave the cash rate at 2.00 percent. The bank lowered the rates by 25 basis points each in February and May.

The board judged that leaving the cash rate unchanged was appropriate at this meeting.

"Information on economic and financial conditions to be received over the period ahead will inform the Board's assessment of the outlook and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target," the bank said in a statement.

Policymakers observed that the Australian dollar has declined noticeably against a rising US dollar over the past year. Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices.

Although the bank did not provide a clear hint that more cuts lie ahead, Paul Dales, chief Australia & NZ economist at Capital Economics, said he still expects a further weakening in the outlook to prompt it to reduce rates to 1.5 percent by December.

According to the RBA, the economy is likely to be operating with a degree of spare capacity for some time yet. With very slow growth in labor costs, inflation is expected to remain consistent with the target over the next one to two years, even with a lower exchange rate.

The RBA statement was almost similar to the June release, except on Greece and China.

Despite fluctuations in markets associated with the respective developments in China and Greece, long-term borrowing rates for most sovereigns and credit worthy private borrowers remain remarkably low, the RBA noted.