SYDNEY, Feb. 7 (Xinhua) -- Economic growth in Australia is expected to pick up pace in 2014 due to a lower exchange rate and stronger activity in the housing and retail sectors, according to the central bank's forecast in the monetary policy statement released Friday.

In the latest statement, the Reserve Bank of Australia (RBA) revised its economic growth forecast for the year to December 2014 to between 2.25 percent and 3.25 percent, up slightly from the two to three percent forecast in the bank's November Statement on Monetary Policy.

The RBA says a number of indicators suggest Australia's GDP ( gross domestic product) growth is likely to strengthen a little in 2014 through to a pace that is still only trend at best.

"Growth is then expected to pick up to an above-trend pace by mid 2016," the RBA said in its quarterly statement on monetary policy.

"The outlook for the next year or so reflects the substantial fall in mining investment and planned fiscal restraint."

At the same time, low interest rates are stimulating prices and turnover in the established housing market and dwelling construction, the bank predicts.

"Over time, these conditions can be expected to lead to higher consumption growth and provide support for non-mining investment," the RBA said.

Resource exports will continue to contribute to output growth for some time with the completion of resource investment project, the bank says.