The decision was widely expected with higher inflation risks balanced against weak growth.
The central bank last raised the rate in November 2010, from 4.5 per cent.
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The Board noted that financial conditions have been easing somewhat, with interest rates for some housing and business loans declining slightly due to increased competition and the fall in some funding costs in financial markets", RBA Governor Glenn Stevens said in a statement.
'The exchange rate has also declined from the very high levels of a few months ago. Credit growth remains low, however, and asset prices have declined.'
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