The Reserve Bank meets tomorrow for its monthly monetary policy meeting and decision on the cash rate.
The RBA has cut the cash rate by 25 basis points in both of its last two meetings, bringing official interest rates to 4.25 per cent.
Thirteen out of 14 economists surveyed by AAP say the Reserve will cut the cash rate to 4.00 per cent, but CMC Markets chief market strategist Michael McCarthy says he's not too convinced.
He says it's possible the Reserve will hold off on a cut to see how well the Europeans deliver on the promises they've made.
RBA governor Glenn Stevens said in a statement in December the eurozone financial and banking problems were likely to weigh on economic activity over the period ahead and financing conditions had become much more difficult, especially in Europe.
