RBA unlikely to stir rates before budget

Economists and academics do not expect the Reserve Bank will feel the need to change interest rates ahead of the May 9 budget when its board meets on Tuesday.

Since board members last met, inflation has returned to the two to three per cent target band after two years below it, while the jobless rate remains close to six per cent.

Timo Henckel, a lecturer at the Australian National University's Research School of Economics, says internationally President Donald Trump's first 100 days in office has continued to raise eyebrows, while sabre-rattling between the US and North Korea is a cause for concern.

But he says the big unknown is this month's budget, which is expected to include a housing package but big reforms such as changes to negative gearing and capital gains tax concessions are off the table.

Dr Henckel chairs the ANU's so-called "RBA shadow board", made up of academics, economists and former RBA board members.

"In an attempt to balance all these competing forces, the RBA shadow board remains convinced that the cash rate should remain at its current level," he said on Monday.

The cash rate has stood at a record-low 1.5 per cent since August.

Treasurer Scott Morrison says this year's budget will show a clear difference between "good" and "bad" government debt in terms of what is being used for infrastructure investment and what is just being racked up for recurrent expenditure.

It was seen as a forerunner for fast-tracking infrastructure spending, which Dr Henckel says will "generate a sizeable fiscal stimulus".