However, Liberal MP and Coalition retirees' advocate Tim Wilson, who has already questioned the need to cut interest rates, vehemently dismissed the idea that the RBA was entertaining quantitative easing.

"Akin to a reckless Labor government indulging in overspending and imposing debt on the next generation, quantitative easing is a direct wealth transfer from the young to protect the asset values of those already established," Mr Wilson said.

"It is unnecessary, economically dangerous and morally unjust.

“At the last round of economic committee hearings the RBA stressed it was extremely unlikely that they'd engage in quantitative easing, and if that were to change there would have to be a compelling rationale which doesn't presently exist."

Rates likely to fall below 1 per cent

Westpac chief economist Bill Evans has also weighed into the debate about just how much more serious the RBA is considering quantitative easing.

"An option which we considered was a move to some form of quantitative easing [QE] should the RBA see the need to ease policy further beyond the 1 per cent level," Mr Evans said.


"Looking into 2020 we expect that the case for policy easing could still be apparent but as rates go lower and time passes the option to use QE will become more attractive.

"Arguably the RBA may see our current forecast of 0.75 per cent as the base or possibly as low as 0.5 per cent. Beyond 0.5 per cent QE seems to be the more effective policy if further easing was required."

JP Morgan's Sally Auld and AMP Capital's Shane Oliver expect 0.5 per cent interest rates by next year.

Citi chief economist Paul Brennan has noted that the average cumulative rate cut in the past four easing cycles is 300 basis points.

If that average continued it would take the cash rate to -1.5 per cent, 75 basis points lower than the Swiss central bank's -0.75 per cent rate.

Other politicians such as economic committee member Liberal MP Jason Falinski has also warned against entertaining the idea.

"The problem with QE is that it devalues savings while increasing assets. In other words it has the unintended consequence of transferring wealth from younger generations to older ones."