Australia's central bank decided to lower its benchmark cash rate by 25 basis points to 2.5 percent, a new record-low, during the Reserve Bank Board's meeting on Tuesday.

The revised rate will be effective from August 7. The decision was in line with expectations.

"The Board judged that a further decline in the cash rate was appropriate," Governor Glenn Stevens said in a statement.

However, the policymakers seem to have dropped their 'scope-to-ease policy' rhetoric from Tuesday's statement, which they had made repeatedly in the past policy meetings.

The Board reiterated that despite a 15 percent depreciation since early April, the exchange rate remained at a high level and it may depreciate further over time, helping a rebalancing of growth in the economy.

RTTNews