The Reserve Bank of Australia has made a rare public appeal to the Morrison government to do more to boost a sliding economy after it sliced official interest rates to one of the lowest levels in the world.

Governor Philip Lowe, after cutting rates by 0.25 of a percentage point to a record low of 1 per cent, said the country should "not rely on monetary policy alone" as analysts predicted even more cuts would be needed to drive down unemployment and push up wages.

RBA governor Philip Lowe: "We will achieve better outcomes for society as a whole if the various arms of public policy are all pointing in the same direction." Credit:Peter Braig

Dr Lowe urged Treasurer Josh Frydenberg to lift borrowing to spend up on infrastructure while increasing fiscal and productivity measures after the first back-to-back interest rate cuts since 2012.

"We will achieve better outcomes for society as a whole if the various arms of public policy are all pointing in the same direction," he said in Darwin on Tuesday.