The Reserve Bank of Australia is widely expected to keep rates on hold at its board meeting on Tuesday, but economists remain divided on the timing and direction of the central bank's next move.

While most economists surveyed by Bloomberg expect the RBA to remain on hold well into next year, financial markets are pricing in a 65 per cent chance of a cut below the current 2 per cent. That would take the interest rate to a new record low of 1.5 per cent.