The Reserve Bank is being urged to save some ammunition in case there is a recession.
The bank is expected to cut the Official Cash Rate to another record low of 1.25 percent tomorrow.
Former Reserve Bank economist, Michael Reddell told Mike Hosking it could be cut again before the end of the year.
He says some people think fiscal policy should be used to support monetary policy now.
"The bank does needs to have some breathing room in case of another recession."
Reddell says softening global markets are driving the Reserve Bank's move.
"If the global economy slows further, there could be an OCR of zero, or below, next year."