Govt must get an economic plan: Bowen

Shadow treasurer Chris Bowen says the decision by the Reserve Bank to cut the cash rate to a record low shows the economy is struggling and in need of a proper economic plan from the Turnbull government.

The central bank cut the cash rate to 1.5 per cent from 1.75 per cent at its board meeting on Tuesday.

"The treasurer simply appears not to get it. He now needs to have a proper plan, not a slogan, not a three-word election gimmick, but a proper plan to engender more confidence, more investment in our economy," Mr Bowen told reporters in Sydney.