Former treasurer Peter Costello has cast doubt on whether lower official interest rates will boost the economy as signs grow the jobs market is struggling with a collapse in the number of manufacturing workers across the country.

Mr Costello, head of the Future Fund and chairman of Nine, this masthead's publisher, said structural reforms would do more to boost growth than lower rates, which would have only a limited impact on the "real" economy.

Former treasurer Peter Costello has cast doubt on moves to cut official interest rates any further, saying structural reforms may do more to boost the economy. Credit:Eamon Gallagher

The Reserve Bank of Australia (RBA) is expected to slice the official cash rate to 0.75 per cent at its meeting on Tuesday as it attempts to drive down the unemployment rate. RBA governor Philip Lowe this week said it would be difficult for the RBA to keep rates steady if central banks around the world were cutting their rates.

Mr Costello on Thursday said he believed further cuts were on the table because of the actions of overseas central banks. Whether it would benefit the local economy was another story.