Economists expect solid growth result

Colin Brinsden, AAP Economics Correspondent

New economic growth figures could give the Turnbull government more to cheer about if economists are right.

On Sunday a Sky News/ReachTEL poll showed the coalition well ahead in the Labor seats of Longman and Braddon - two of the five by-elections being contested on July 28 - and potentially inflating the government's wafer-thin majority.

The poll also found almost half of voters nationwide backed a reduction in the corporate tax rate to 25 per cent, putting pressure on crossbench senators when the legislation is tested in the upper house in the final two weeks of June.

The trifecta could be complete if the national accounts on Wednesday show the economy finally firing on all cylinders, as predicted by economists.

They expect the economy grew by a solid 0.8 per cent in the March quarter, double the rate posted during a dismal final three months of 2017.

This would lift the annual growth rate to 2.7 per cent after 2.4 per cent previously and en route to the three per cent pace over the next couple of years as forecast by Treasury, the Reserve Bank, the International Monetary Fund and the OECD.

Economists will finalise their expectations after company profits and business inventories data for the quarter are released on Monday and international trade and government spending on Tuesday, figures that in the past have prompted a significant rejigging of forecasts.

The Reserve Bank will also hold its monthly board meeting on Tuesday.

Recent benign prices and wage growth figures suggest the central bank has scope to leave the cash rate at a record-low 1.5 per cent for a while longer yet.

The OECD warned last week a rate rise could come towards the end of the year as wages and inflation growth start to pick up.

However, Australian economists think a move is more likely next year.

"The data flow has been insufficient to move the needle for the RBA and a rate hike by year end is difficult to deliver," TD Securities chief strategist Annette Beacher says.

Instead, she expects rate rises in May and November 2019, lifting the cash rate to two per cent, having been at 1.5 per cent since August 2016..