The RBA leaves interest rate unchanged at 1.50 per cent at its February 2019 meeting.

While it flagged a downgrade to its Australian GDP growth forecasts over the next two years, and acknowledged that downside risks for both the domestic and global economies have increased, it retained its view that unemployment will gradually fall in the years ahead, helping to lift wage and inflationary pressures.

Dr Lowe said the Australian economy will grow by around 3 per cent this year, before easing a bit in 2020.