The Reserve Bank of Australia appears poised to slice official interest rates, with governor Philip Lowe on Tuesday saying it would be on the bank's agenda next month.

In a speech to the Queensland branch of the Economic Society of Australia in Brisbane, Dr Lowe said without a cut in interest rates it was unlikely the bank's forecasts for lower unemployment and a lift in inflation would be met.

Declaring that Australia could "do better" than have an unemployment rate around 5 per cent, he said there were few options for the RBA but to consider a rate cut.

"A lower cash rate would support employment growth and bring forward the time when inflation is consistent with the target," he said.