Reserve Bank governor Philip Lowe says it is "extraordinarily unlikely" that Australia's economy will need to be stimulated by slashing interest rates into negative territory.

However, Dr Lowe added that low rates alone may not necessarily boost investment.

"I don't think it's the right assumption to make that we're going to have a lot more work to do to get inflation back to target and growth back to trend," he said a panel event at the International Monetary Fund's (IMF) annual meeting in Washington.

"I'm not going to speculate on negative interest rates and quantitative easing [large-scale money printing] in Australia, other than to say that negative interest rates are extraordinarily unlikely in my country."

The RBA chief also said: "The commodity cycle is kind of now in a slight upswing, so the resource sector, which has been contractionary for the last six or seven years, is now in an expansion phase."

Since June, the RBA has aggressively cut interest rates by 75 basis points.

After three successive rate cuts, Australia's official cash rate is sitting at the record low of 0.75 per cent.

'Gradually improving'

Dr Lowe maintained that the RBA's rate cuts and Government's tax cuts have been effective, and are supporting the domestic economy and property market recovery.

"The economy has been through a very soft patch over the past year but it is actually gradually improving — the lower interest rates are working," he added.

"So I think it's quite probable that we'll see a return to trend growth over the next year, which will be good."

He also expects this will "help get the unemployment rate down and gradually wages will pick up."

Although Dr Lowe has downplayed the possibility of negative interest rates, he previously told the House of Representatives that the RBA is prepared to do "unconventional things".

These include slashing rates to zero or quantitative easing.

Earlier in the week, markets had priced in a 59 per cent chance of the RBA cutting rates at its next meeting on Melbourne Cup day (November 5).

Those odds fell to 24 per cent, according to Refinitiv market data, after the Bureau of Statistics published better-than-expected job figures on Thursday.

Australia's unemployment rate fell to 5.2 per cent in September, but remains too high for the RBA's liking.

The central bank has repeatedly stated it wants to see the jobless rate fall to 4.5 per cent, a level it considers to be full employment in the hopes of lifting wages, inflation and ultimately, consumer spending.

ABC/Reuters