No rate change seen at Stevens' last stand

Reserve Bank governor Glenn Stevens is expected to keep the cash rate at 1.5 per cent when he chairs his last central bank board meeting on Tuesday.

Glenn Stevens is expected to keep the cash rate at 1.5 per cent in his last RBA board meeting. (AAP)

Academics and economists expect Glenn Stevens' final Reserve Bank board meeting on Tuesday as governor will be a mere formality with no need to cut the cash rate after the reduction in August.

Mr Stevens will step down as governor on September 17, retiring after 10 years leading the central bank and handing over the role to his deputy for the past four years, Philip Lowe.

Timo Henckel, a lecturer at the Australian National University's Research School of Economics, believes while employment figures are showing signs of a softening labour market, there was no need for rates to go any lower,

"After the RBA's decision in August to cut the cash rate to a historic low of 1.5 per cent, there is good reason to pause," Dr Henckel says.

Dr Henckel chairs the ANU's so-called "RBA shadow board" made up of academics, economists and former RBA board members, including Professor Warwick McKibbin.

The shadow board puts just a five per cent probability for the need for a lower cash rate.

Looking ahead, it placed a 65 per cent chance of a rate increase in six months time.

However, financial markets believe there is a 50/50 risk of a further reduction to 1.25 per cent by the end of the year.

The central bank's rate decision comes in a busy week for economic figures, not least Wednesday's national accounts for the June quarter.

Economists like Macquarie Research's James McIntyre expect economic growth will have been a more sedate pace in the June quarter after the robust start to the year, which saw 1.1 per cent growth in the March quarter.

Mr McIntyre is forecasting growth of just 0.3 per cent in the quarter, a shade below an average expectation of 0.4 per cent.

However, this would still leave annual growth at 3.1 per cent taking into account the overall strength of previous quarters.

He said the annual pace of growth is almost entirely a reflection of exports, although for the June quarter he is not expecting any contribution to GDP.

Economists will finalise their forecasts after quarterly figures for business profits and inventories, international trade and government spending are released over Monday and Tuesday.