Retiring RBA chief to be honoured

Glenn Stevens has received many plaudits for his leadership of the Reserve Bank of Australia over the past decade and now he can add one from the Queen to the list.

The central bank governor will retire next week but before he does so, Mr Stevens will pick-up a Companion of the Order of Australia.

He will receive the honour from Governor-General Sir Peter Cosgrove when a Queen's Birthday honours ceremony is held in Government House on Friday.

Mr Stevens' successor at the central bank, deputy governor Philip Lowe, will slip into the driver's seat at a time when the economy has passed 25 consecutive years without a recession and growth is running at its fastest pace in four years.

A the same time, interest rates are at record lows and unemployment has fallen notably in the past year.

According to an ANZ Research analysis: "What's not to like?"

However, it notes inflation continues to undershoot the two to three per cent target band.

It means Dr Lowe may be forced to cut the cash rate even further in coming months from its record low 1.5 per cent and financial markets see a reduction to 1.25 per cent by early next year.