A deal to give Greece more money to help rescue the Eurozone member from its massive debt could create the conditions for a further period of stable interest rates in Australia.
The 130 billion euro ($A161 billion) package - the second for Greece - struck by eurozone finance ministers after a marathon round of negotiations in Brussels, coincided with the release today of the latest Reserve Bank of Australia board minutes.
The central bank left the cash rate unchanged at the February 7 meeting when economists had widely expected it to cut it by a further 25 basis points, following reductions in November and December.
The minutes of the gathering show the RBA was eyeing the fragile financial situation in Europe, but believed the risk of a bad outcome had lessened.
"With growth expected to be close to trend and inflation consistent with the target, the board considered that this setting was appropriate for the overall macroeconomic outlook," the minutes said.
However, the board also felt that if Australian economic conditions were to "weaken materially" there was scope for a further easing in monetary policy, given subdued inflation.
Treasurer Wayne Swan welcomed the progress on Greece, saying it would boost confidence.
"However, as the Reserve Bank confirmed in today's minutes, Europe must still continue working towards a comprehensive solution to excessive sovereign debt levels," Mr Swan said in a statement.
While Australia was not immune to global developments, "the Reserve Bank delivered another timely reminder today to all the doomsayers that our economy and our region are strong, and our economic prospects are bright", he added.
Macquarie Bank divisional director Brian Redican said there was no urgency to cut official interest rates in Australia.
"While there is scope to cut rates if things deteriorate further, the RBA doesn't see any urgency to do that just yet," he said.
Still, the RBA conceded there were "significant differences" in conditions across various sectors of the domestic economy - with some markets booming and others facing structural changes.
Another set of those changes was in focus as steelmaker OneSteel said it would shed another 430 jobs, after reporting a $74 million first half loss.
The job losses follow a growing list of staff reductions in manufacturing, banking and transport - much of which has been blamed on the high Australian dollar.
But Minerals Council of Australia chief Mitch Hooke said it is wrong to blame the mining boom for the imbalances in the national economy.
"The benefits are flowing on to the economy as a whole. The boom is creating a whole stack of jobs," Mr Hooke told a Senate hearing into the federal government's proposed mining tax.
