Interest Rates are expected to drop from 4.25 per cent down to 4.00 per cent on Tuesday for the third consecutive time when the RBA meets again.
Paul Bloxham chief economist of HSBC stated that although a February rate cut had been widely predicted, he felt that due to recent data released, it would be a close call at the RBA's meeting.
The Australian Bureau of Statistics reported in January that the annual rate of headline inflation for the December quarter was 3.1 percent very close to The RBA'S target band of two to three per cent.
Mr. Bloxham also felt that due to the inflation data and the weaker local economic figures this had opened the door for a rate cut in February.
Unemployment has risen from 4.9 per cent in April - 5.2 per cent in December 2011.
Shane Oliver AMP's chief economist stated that the job market was weakening, retail sales and housing construction were also weaker, and that house prices were falling.