More interest rate cuts are expected from the Reserve Bank this year to help an economy that is weaker than it previously thought.
In its most recent forecasts, issued on Friday, the central bank cut its economic growth forecasts by a quarter of a percentage point compared to the ones it issued in November.
It is now forecasting growth of between 2.25 per cent to 3.25 per cent for the year to December, down from 2.5 per cent to 3.5 per cent.
"The timing of the recovery in non-mining business investment has been pushed out until later in 2015," the RBA said on Friday.
The RBA cut the cash rate on Tuesday, to a new record low of 2.25 per cent.
Commonwealth Bank economist Diana Mousina says the RBA did not indicate either on Tuesday or Friday whether more interest rate reductions are on the way.
"However, based on the low inflation outlook the RBA holds an implicit easing bias," she said.
"We expect that the next set of inflation numbers, in April, will be quite low and give the RBA the scope it needs to cut the cash rate again."
The Commonwealth Bank is predicting a quarter of a percentage point cut in May, taking the cash rate to two per cent.
"If the data stream before then indicates a faster deterioration in the domestic economy then an earlier cut may be expected and in that context each board meeting is live," Ms Mousina said.
The RBA said the sharp fall in mining investment was only partially offset by a small increase in non-mining investment.
Consumer spending is also only slowly recovering.
Although lower petrol prices would put more money in people's pockets and boost spending, the RBA said that was being weighed down by weaker employment and wages growth.
JP Morgan chief economist Stephen Walters is also predicting another rate cut, but believes the RBA will hold off for a bit.
"The RBA probably rests a month or two to gauge the impact of Tuesday's rate cut, and to see how consumers respond to the drop in oil prices," he said.
"The consumer sentiment report next week will be the first cab off the rank in this regard; we expect a small improvement. Waiting until May before moving again, as we forecast, also allows the staff to see the next quarterly CPI print in late April."
CitiGroup economists Josh Williamson and Paul Brennan said the lower cash rate will boost an already strong housing market but could also flow through to help consumer confidence.
"We could see more flow-through from housing into the consumer, but so far it has proved hard to lift confidence. We get another read on consumer sentiment next week," they said.
"For us the key boost to the economy from lower rates needs to come from the Australian dollar."
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