RBA leaves rate cut door ajar

Reserve Bank governor Glenn Stevens hasn't ruled out the need for another interest rate cut in the face of an uncertain global economy.

The first central board meeting of the year on Tuesday left the cash rate at an all-time low of two per cent, where it has stood since May last year.

While giving an upbeat appraisal of the economy, Mr Stevens expressed his concerns over the global economy and volatile financial markets.

Predicting that inflation is likely to remain low over the next year or two, Mr Stevens said this may provide scope for easier monetary policy "should that be appropriate to lend support to demand".

In the meantime, he said new economic figures should allow the board to judge whether the recent improvement in labour market conditions is continuing and whether the recent financial turbulence portends weaker global and domestic demand.

Building approvals and international trade data kicks off the usual spread of monthly figures from the Australian Bureau of Statistics.

Crucial labour force figures are not due until February 18.