The Reserve Bank of Australia (RBA) released its minutes from May monetary policy meeting on Tuesday. The RBA said that it will not release any guidance on the future path of monetary policy in its statement, but the interest rate cut at future meetings is possible if needed.

Board members pointed out that further depreciation of the Australian dollar "seemed to be both likely and necessary".

Board members discussed the timing of the interest rate cut. The interest rate cut at the June meeting was also possible. But the RBA decided to lower its interest rate in May because of the release the same week of its quarterly statement on monetary policy.

The central bank noted that Australia's terms of trade were expected to decline more than forecasted due to the weakness in the Chinese property market.

According to the RBA, the economic growth in Australia was expected to need more time to strengthen and "the unemployment rate was likely to remain elevated for longer".

The RBA cut its interest rate to 2.00% from 2.25% on May 05.