The Coalition's retirees' advocate MP Tim Wilson has questioned the need to cut interest rates suggesting it would hurt those who heavily depend on savings and do little to help new buyers get into the market.

Mr Wilson was the Coalition's attack dog against Labor's policy to remove franking credit rebates for self-funded retirees, heading the parliamentary inquiry that found the policy "inequitable and deeply flawed".

“The merit of continuing to lower interest rates as a stimulus is specious," Mr Wilson said of the impending rate cut.

"With so much of the population depending on interest-bearing deposits for their income, it can actually reduce disposable income for those who can afford it least," he said.

An interest rate cut of 0.25 percentage points to 1.25 per cent next Tuesday - the first since August 2016 - has been fully priced in by financial markets and some economists are forecasting as much as four more rate cuts over the next year.

Australian households have more than $935 billion in deposits held with major banks as of March of this year according to data from the Australian Prudential Regulation Authority.