The Reserve Bank of Australia (RBA) kept unchanged its interest rate at 2.00% on Tuesday. This decision was expected by analysts.

The RBA Governor Glenn Stevens said that the board' decision was appropriate at this meeting.

Stevens repeated that the Australian dollar declined against a US dollar and against a basket of currencies, and the further interest rate cut is "both likely and necessary" as the Australian dollar fell due to lower key commodity prices.

The RBA governor noted that there was little impact on bond markets due to problems in Greece and China.

"Despite fluctuations in markets associated with the respective developments in China and Greece, long-term borrowing rates for most sovereigns and creditworthy private borrowers remain remarkably low," Stevens said.

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