The Premier, Lara Giddings, has said that the time is right for further interest rate relief at tomorrow's Reserve Bank board meeting.

Ms Giddings said more support was needed to offset the impact of the high Australian dollar and weaker commodity prices.

"Both the retail and housing sectors remain sluggish across the nation as a result of the cautious consumer, with household savings rates at generational highs," Ms Giddings said.

"Further rate relief would mean more money in consumer's pockets, which will give confidence to our retail sector and its 26,000 strong Tasmanian workforce.

"The most recent RBA minutes show that the outlook for inflation is contained, providing scope for more rate cuts.

"At 3.5 per cent, Australia's official interest rates are amongst the highest in the world, with most advanced economies currently maintaining rates below 1 per cent," Ms Giddings said.

Ms Giddings said if a 25 percentage point cut was passed on in full by the banks, it would equate to around a $35 per month reduction in average home loan repayments in Tasmania.