Westpac chief executive Brian Hartzer says boosting business confidence would be a better salve for the economy than a cut to the cash rate.
Economists are increasingly confident the Reserve Bank of Australia will on Tuesday cut interest rates for the first time since August 2016 in a bid to reignite stalling economic growth.
Westpac economists expect two rate cuts this calendar year, but Mr Harzter told analysts on Monday the best way to boost consumption and the overall economy would be to lift business investment and help increase wages.
Speaking after Westpac unveiled a 22 per cent fall in first-half profit, Mr Hartzer said business-friendly policy and tax settings were crucial for economic growth.
Mr Hartzer would not comment on the likelihood of a cut, or answer questions about whether his bank - which on Monday reported net interest margin had narrowed to 2.12 per cent in the first half - would pass a cut on to customers.
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"It's true economic conditions in Australia are softening ... (but) to be clear though, interest rates are not the problem," Mr Hartzer said.
"The question we should be asking is 'how to get businesses to invest and employ more people?'"
Mr Hartzer has long trumpeted the importance of business investment.
In 2017, he said clear and consistent government policy was crucial to make businesses confident enough to invest and offset any drop in consumer spending.
