The Reserve Bank had previously lifted rates seven times from October 2009 to November 2010 - a total of 1.75 percentage points, from 3.00 per cent to 4.75 per cent.
But underemployment remains at an all-time high (based on trend estimates), economic growth is sluggish and wages growth is at a record-low 1.9 per cent per year. The RBA is traditionally comfortable with failing to meet market expectations and it did so in its shortest statement since October, at 493 words.
"Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time", Governor Philip Lowe said in the statement's final paragraph.
Lowe did show some optimism: business conditions have improved and capacity utilization has increased; and business investment has picked up in areas of Australia unaffected by mining.
At its last meeting, the central bank said the global environment has continued to pick up and improvements had been made in the domestic economy.
In an apparent reference to risk of pushing up the dollar should the bank lift interest rates, Dr Lowe said the fall in the dollar since 2013 had helped the economy transition out of the mining investment boom.
An appreciating exchange rate would complicate this adjustment, RBA noted.
It comes amid widespread changes to borrowing rates among the nation's banks and other lenders, particularly on interest-only loans and mortgages for residential property investors.
In fact financial markets are now reportedly factoring in a 50% chance of a rate hike before Christmas, which means interest rates are all but certain to remain abnormally low for at least another 12 months. Policymakers affirmed that Australian economy would continue to grow gradually.
It added that wage growth remains "subdued in most countries, as does core inflation".
Despite the recent hiring surge it said that wage growth "remains low... and this is likely to continue for a while yet".
Conditions in the housing market vary considerably around the country.
"Although we think the longer run forecasts will remain unchanged".
Economic growth has appeared slightly anemic.
The Australian dollar retreated from recent highs against other major currencies in the Asian session on Tuesday.