While markets are eagerly awaiting the Reserve Bank of Australia's (RBA's ) imminent decision on policy rates, most economists are of the view that the central bank will leave the cash rate on hold.

Ben Jarman, a senior economist with JPMorgan, said that he didn't expect the RBA to announce any cut in key rates for the second consecutive month on Tuesday.

Mr. Jarman said that the RBA cut rates to an historic low in April, and now the data should show why the country needed deeper cuts.

Speaking on the topic, he said, "You've delivered 200 basis points [in cuts] all up, the burden is on the data to show why you need to do more, and we don't think that today will get you over the line."

He further said that the capital expenditure figures last week showed steady progress and that things are on the right track.

Out of twenty-five economists surveyed by Bloomberg, only one said he expected the central bank to announce a cut in rates at its June meeting.

In April, the RBA brought cash rate down to 2.75 per cent, its lowest level since early 1990s. Any further cut could only be justified on the grounds that the economy isn't responding to the previous cuts.