At its meeting today, the Board decided to lower the cash rate by 25 basis points to 2.0 per cent, effective6 May 2015.

The Reserve Bank of Australia is widely tipped to cut interest rates for the second time this year when its board meets on Tuesday, despite signs that the economy is improving and its fears about further stoking Sydney's hot housing market.

Of the 27 economists recently polled by Bloomberg, 23 are forecasting a 25 basis point (or a quarter of a percentage point) cut to an all-time low of 2 per cent in the cash rate at the meeting.