Another cut to the official interest rate on Tuesday to a record low 0.75 per cent will have a diminishing effect on the economy, say chief executives, but the country's politicians are still united in pressuring the banks to pass any cut on in full.

Financial markets are pricing in an 80 per cent chance of a quarter-percentage point rate cut on Tuesday, following two similar such easings in the past four months. Historically there have been very few times the Reserve Bank of Australia (RBA) has not moved if the markets were predicting the chance of a movement at 80 per cent or above.