The Reserve Bank says more interest rate cuts could be on the way, if wages, inflation, and the housing market do not improve.

The RBA says Tuesday's decision to cut the cash rate to a record low 1.75 per cent was due to economic growth concerns.

In fact, the RBA actually lifted its gross domestic product (GDP) forecast for the current financial year up to 2.5-3.5 per cent.

The analysts expect that unemployment has peaked and will now fall gradually over the next couple of years.

Overall, the bank found “no material change” to its economic growth or employment forecasts.

“GDP growth is expected to strengthen gradually to an above trend rate, reflecting the effects of low interest rates and the depreciation of the exchange rate since early 2013,” the RBA noted in the report.

The full report is available here, while RBA Governor Glenn Steven comments are available here.

In addition, Governor Stevens has welcomed the appointment of Philip Lowe as the next Governor.