Reserve Bank governor Philip Lowe has urged the Morrison government to get infrastructure projects "shovel-ready" in case they are needed for an emergency stimulus to pull Australia out of an economic downturn.

Dr Lowe said the Coalition should borrow while interest rates were at record lows to fund construction of projects. The central bank board is tipped to cut the official cash rate to 1 per cent when it meets in July, as weak wages, employment and inflation data continue to hamper the federal government's claims of an economic recovery.

RBA governor Philip Lowe says major infrastructure funding should be run like monetary policy - at arm's length from the government - so that voters trust it is fit for purpose. Credit:Alex Ellinghausen

"If the government can build productive capacity by borrowing at low interest rates, it seems like that is a good thing to do," he said.

"Governments here and around the world should have their top drawers full of really good ideas that are shovel-ready in case growth slows."