All 27 economists surveyed by Bloomberg expect the RBA to keep rates on hold at its July meeting while traders see only an 8 per cent chance of a reduction.

A rate cut in the final quarter is predicted by nine economists as stagnant wages, a forecast record decline in business investment and plunging commodity prices point to a darkening outlook for the economy.

Mr Stevens has said he’s prepared to ease rates further, while noting the diminishing returns of further cuts to an already very low policy rate.

“Whether you go lower with rates or not now is not an economic question really,” said Bob Gregory, a professor at the Australian National University in Canberra, who has studied the economy for almost half a century. “At these low rates, you don’t get anything by going lower, you just go lower because you want to be seen to be doing something.”