The major banks look set to take centre stage in the economic discussion, especially if the Reserve Bank of Australia goes ahead with a widely expected official cash rate reduction at its first board meeting of the year today.

A cut in the RBA cash rate to 4 per cent, from 4.25 per cent, should result in a reduction of around $50 a month in repayments for the average $300,000 home loan.

But some of the big banks have already warned it might be too hard to pass the cut on in full to their customers because they face increased funding costs in overseas capital markets.

``People who are customers are entitled to be very angry if they don't see interest rate reductions passed on,'' Ms Gillard said yesterday.

Small business owners certainly hope another rate cut is on the cards, following on from the reductions in November and December, as they face the financial ramifications of soft trading conditions.

``It makes good economic sense to ensure this sector, which accounts for 96 per cent of businesses in Australia, is offered rate relief,'' the head of business software provider MYOB Tim Reed said.

Small and medium-sized business are facing a domestic exchange rate that won't back down, higher fuel prices, financially cautious consumers, intensified competition from a global online sales environment and increasing red tape.

A new survey by the Australian Chamber of Commerce and Industry released yesterday also showed that business expectations were at their lowest since 2009.

Most business indicators fell during the December quarter, including those for sales, profitability, investment and employment.