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No rate change at Stevens' last hurrah

AAP logoAAP 5/09/2016 Colin Brinsden, AAP Economics Correspondent

Glenn Stevens has made some difficult decisions in his 10 years at the helm of the Reserve Bank of Australia.

But economists widely expect his final monthly board meeting as governor on Tuesday will be a straight-forward affair - no change to the cash rate given it already stands at a record low 1.5 per cent.

Mr Stevens retires on September 17, handing over the role to his deputy of the past four years, Philip Lowe.

Financial markets expect there is a 50/50 chance Dr Lowe will cut the cash rate to 1.25 per cent by the end of the year.

The Reserve Bank board cut the cash rate from 1.75 per cent when it last met in August as inflation remained extremely subdued.

Since then, the jobless rate has ticked down, wages growth and retail spending has flat-lined, while quarterly reports suggest economic growth was much slower in the June quarter compared with the 1.1 per cent rate in the first three months of the year.

Economists expect Wednesday's national accounts will show the economy grew by 0.4 per cent in the June quarter, although this would still mean an annual growth rate of 3.2 per cent.

It would be in line with the 3.25 per cent predicted by the central bank in its updated forecasts released last month.

However, economists' estimates might change after quarterly international trade and government spending data is released on Tuesday.

Weekly consumer confidence is also published.

The ANZ-Roy Morgan confidence index fell 2.8 per cent from a three-year high last week.

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