Interest rate reductions are unlikely

Few financial experts believe the Reserve Bank of Australia (RBA) will lower the country's interest rates this week.

Board members meet at the start of each month and discuss matters that are affecting the nation.

The last two gatherings have resulted in a reduced cash rate, as the RBA slashed it by 50 points in May and a further 25 points in June.

However, it would be a surprise if there was any more action – especially to AMP chief economist Shane Oliver.

"We expect the RBA to leave rates on hold on the grounds that after the last rate cut GDP and employment data surprised on the upside," he told the Herald Sun.

Mr Oliver stated that the RBA wants to assess the impact of the recent rate cuts before making any more adjustments, but there is a chance the cash rate will fall from its current level of 3.5 per cent by the end of the year.

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