Following a monthly policy meeting on Tuesday, the Reserve Bank of Australia (RBA) has expectedly kept its interest rates unchanged at the overnight '49-year low' of 3 percent, for the third consecutive month.

The RBA Governor Glenn Stevens' decision to continue with the current 3 percent cash rate target - which was anticipated by all the 20 analysts surveyed by Bloomberg News - has come amid indications of the lowest borrowing costs in almost five decades.

Other than China and India, Australia is one of the few leading economies to have reported first quarter growth, with government cash aid and rate cuts fueling consumer spending. The economy depicted a 0.4 percent growth in the first quarter vis-a-vis the earlier quarter, with the services industry expanding for the first time in 15 months in June.

However, the Australian economy's growth may slow after the recent drop in exports to a 14-month low, the falling bank lending, and the declined home building approvals.

Noting the possibility of slowed growth, Stevens, who cut borrowing costs by a record 4.25 percentage points in six moves during the September-April period, said that there is still "some scope for further easing of monetary policy, if needed." He also remarked: "Economic conditions in Australia have to date not been as weak as expected a few months ago."