The chief economist at the NAB says the Reserve Bank of Australia will announce another interest rate cut tomorrow.

Economists were expecting two more rate cuts towards the end of the year but the market has moved that prediction forward to July 2.

NAB Chief Economist Alan Oster has predicted the RBA will cut interest rates on in July and again in November.

Mr Oster tells Ross Greenwood the RBA needed to separate the cuts.

“If you cut 50 basis points you might scare the troops.”

He says the government needs to act now to boost the economy.

“Keeping the budget in surplus is not worth having an economy that sort of stalls.”

Click PLAY to hear the full interview