Reserve Bank of Australia leaves interest rate on hold at record low of 1.75 percent

The Reserve Bank of Australia has kept the official interest rate on hold at 1.75 percent.

RBA governor Glenn Stevens said given weak domestic inflation, the ongoing transition away from mining and recent market volatility following the Brexit vote, it was "prudent" to hold rates in July.

"Further information should allow the Board to refine its assessment of the outlook for growth and inflation and to make any adjustment to the stance of policy that may be appropriate," Mr Stevens said in a statement.

However, economists believe the cash rate could be cut to 1.5 percent at the August board meeting, if official inflation figures later this month prove to be extremely benign.