The Reserve Bank of Australia left the official cash rate at a record low 0.1 per cent following its monthly board meeting, as widely anticipated by economists.
Broad-based selling has continued for a second consecutive day on the ASX as fears of a US credit default and energy shortages in China add to economic uncertainty.
Australia's share market has recorded its steepest fall since February as falling iron ore prices ruined miners and Chinese property giant Evergrande teetered on collapse.