The Reserve Bank of Australia has kept the cash rate at 2.5 per cent, highlighting an improved outlook for the local and overseas economies.
The decision was expected, with all 13 economists surveyed by AAP last week forecasting no change at the first RBA board meeting of the year.
The RBA last cut the cash rate in August 2013, by a quarter of a percentage point.
"On present indications, the most prudent course is likely to be a period of stability in interest rates," RBA governor Glenn Stevens said in a statement accompanying the decision.
"In the Board's judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target."
In the latter half of 2013 Mr Stevens on several occasions said the Australian dollar was uncomfortably high.
However, in recent weeks the Australian dollar has stayed below 90 US cents, which seemed to please the RBA governor.
"The exchange rate has declined further, which, if sustained, will assist in achieving balanced growth in the economy," Mr Stevens said.
The RBA governor also said there is a good change that growth in the global economy should pick up this year.
"The United States economy continues its expansion and the euro area has begun a recovery from recession, albeit a fragile one," Mr Stevens said.
"Japan has recorded a significant pick-up in growth, while China's growth remains in line with policymakers' objectives. Commodity prices have declined from their peaks but in historical terms remain high."
JP Morgan economist Tom Kennedy says changes in the RBA's commentary shows it is moving away from an easing bias to a neutral stance.
He says the RBA has also dropped any reference about the currency needing to be lower.
"Prior to this we have heard the RBA saying 85 cents is quite a good level but with the currency being below 90 US cents it has really taken a lot of pressure off them," Mr Kennedy said.
"The lower the Aussie dollar goes the less work the RBA has to do in the current cycle."
RBC Capital Markets senior economist Su-Lin Ong said the RBA statement signalled there wouldn't be any movements in the cash rate for at least a year.
"We think the cash rate will stay at a record low of 2.5 per cent for an extended period, probably well into 2015," she said.
Ms Ong said that previous cuts have helped boost the interest rate sensitive parts of the local economy, eliminating the immediate need for the RBA to cut the cash rate further.
"They're continuing to see signs of policy traction both in consumer consumption and housing, so they're pretty comfortable to sit where they are," she said.
