Former Reserve Bank board members and market economists are arguing that another interest rate cut is not needed next month, demanding instead that further efforts on the fiscal front by government would be much more effective.

While the big four bank economists all expect the central bank to pull the trigger and cut the cash rate by 0.25 percentage points to a record low 0.5 per cent on February 4, overall financial markets price such a move on a knife-edge 55 per cent chance.