Reserve leaves interest rates on hold

The Reserve Bank of Australia has left the cash rate unchanged in its interest rates decision today.

The RBA has been expected to maintain its stance that it keeps the cash rate unchanged for the foreseeable future.

It has been fourteen months since interest rates were put to a record low of 2.5 per cent.

"Volatility in some financial markets has picked up in recent weeks. Overall, however, financial conditions remain very accommodative," a statement from Governor Glenn Stevens read.

"Long-term interest rates and risk spreads remain very low. Markets still appear to be attaching a low probability to any rise in global interest rates or other adverse event over the period ahead."

There was expected to be greater attention on its comments regarding the lower Australian dollar, which has fallen as much as eight US cents since late July.

The Australian dollar fell almost a quarter of a US cent after the Reserve Bank left the cash rate unchanged.

The currency was worth 87.34 US cents at 2.33pm (AEDT), down from 87.55 US cents shortly before the RBA's decision was announced.