ANZ Bank economists expect the Reserve Bank to cut official interest rates to a new record low of 1.5 per cent next year in response to a worsening global economy and stubbornly high unemployment.

ANZ economists Warren Hogan and Justin Fabo on Thursday argued that the extra support would be needed to boost an economy still suffering from a plunge in mining investment.

Tuesday's rates decision coincides with the federal government's third budget. Credit:Henry Zwartz

"We now expect the RBA to cut the cash rate by a further 50 basis points next year, taking the cash rate to 1.50 per cent," they said.

"Pinpointing the timing of the cuts is tricky, but we are pencilling in 25 basis point cuts in February and May at this stage."