"The low level of interest rates, recent tax cuts, ongoing spending on infrastructure, the upswing in housing prices in some markets and a brighter outlook for the resources sector should all support growth."

The statement says the outlook for the Australian economy is "little changed from three months ago".

"The central scenario remains for inflation to pick up, but to do so only gradually. In both headline and underlying terms, inflation is expected to be close to 2 per cent in 2020 and 2021."

And the central bank's outlook for the global economy remains "reasonable", though "the risks are tilted to the downside".

"The US–China trade and technology disputes continue to affect international trade flows and investment as businesses scale back spending plans because of the uncertainty."

The central bank board reiterated its statement on further easing bias saying it was "reasonable to expect that an extended period of low interest rates will be required in Australia to reach full employment and achieve the inflation target".

The bank repeated its comments that there were "further signs of a turnaround in established housing markets, especially in Sydney and Melbourne".


"In contrast, new dwelling activity is still declining and growth in housing credit remains low. Demand for credit by investors is subdued and credit conditions, especially for small and medium-sized businesses, remain tight. Mortgage rates are at record lows and there is strong competition for borrowers of high credit quality," the statement says.

Poor retail sales growth in September along with the lowest annual retail sales volumes since the 1990s has raised concerns about the level of consumption in the economy. That poor result will add to the central bank's easing bias.

The RBA has cut its cash rate three times to a new record low of 0.75 per cent before the governor suggested in the past few weeks that money markets should not assume any further reductions.

"As is their habit, the RBA will now take some time to assess how the economy responds to those cuts," APAC Economist Callam Pickering said.

Treasurer Josh Frydenberg, who will met with the Reserve Bank board after its monthly interest rate meeting, said that while underlying inflation had been below the target for 15 quarters, he still expected it would return to its target over the "medium term".