Glenn Stevens.Credit:Christopher Pearce
"Other areas of domestic demand,as well as exports,have been expanding at a pace at or above trend. Labour market indicators continue to be somewhat mixed,but are consistent with a modest pace of expansion in employment in the near term,"he said.
Mr Stevens pointed to recent data showing inflation was at a 17-year low and would probably stay low for some time,while low interest rates were making banks more willing to lend money,which was helping the economy.
"The board judged that prospects for sustainable growth in the economy,with inflation returning to target over time,would be improved by easing monetary policy at this meeting,"Mr Stevens said.
Mr Stevens said dwelling prices had been rising"only moderately"over the course of this year,with considerable supply of apartments scheduled to come on stream,particularly in the eastern capital cities. Growth in lending for housing had slowed,suggesting"the likelihood of lower interest rates exacerbating risks in the housing market has diminished".