Jobs, wage growth focus as RBA holds rates

The Reserve Bank of Australia has held its benchmark interest rate at 1.5 per cent, leaving the cash rate unchanged for an 11th straight month.

RBA governor Philip Lowe pointed to mixed labour market conditions, with growth in employment in recent months tempered by low wage growth, as reasons for holding the status quo.

Language in a statement accompanying the rates decision was largely unchanged from the June decision, however today's statement did not include last month's expectation that economic growth would increase gradually to above 3 per cent in a couple of years.

"Consumption growth remains subdued, reflecting slow growth in real wages and high levels of household debt," Dr Lowe said.

Dr Lowe indicated the variations in housing markets around the country continued to stay the RBA's hand, with rises in some markets, albeit with signs of easing, and declines in others.

The central bank boss did refer to the fall in March quarter GDP, saying it partly reflected temporary facors

The Australian dollar has dropped sharply on the decision, falling from around US76.8 cents just before the midday announcement to US76.29 cents at 1:30pm.