Reserve Bank leaves rates on hold in February

The Reserve Bank of Australia has left its cash rate steady at 1.5 per cent for the fifth consecutive board meeting as it prepares to release forecasts showing economic growth picking up and inflation climbing from 1.5 per cent to more than 2 per cent.

RBA Source: getty image

In a statement released after the board meeting, Governor Philip Lowe said economic growth was forecast to centre around 3 per cent for the next couple of years, well up from the September-quarter figure of 1.8 per cent and the central forecast of 2.4 per cent in the Scope BusinessDay economists' forecasting survey.

The Australian dollar lifted to US76.62¢, from around US76.40¢ just before the announcement, as markets widened the odds on another policy easing.

The governor will release his updated forecasts on Friday along with a statement outlining his thinking about the year ahead. He will also outline his thinking in a speech to be delivered in Sydney on Thursday night.