Economic activity is expected to slacken further as higher interest rates and gloomy global conditions persist.

The national accounts for the March quarter, due on Wednesday, follow another interest rate hike that surprised many.

Based on the string of clues left by the Australian Bureau of Statistics in the lead-up to the growth report, ANZ economists are anticipating a 0.4 per cent lift over the quarter and a 2.5 per cent annual rise.

Senior economist Felicity Emmett said the various inputs into the GDP figure released over the past few weeks were strong enough to bump up their forecasts from an earlier prediction of 0.2 per cent quarterly growth.

“A 0.4 per cent gain for the quarter would be a touch lower than the 0.5 per cent recorded in the December quarter and suggest economic momentum continues to slow in response to monetary tightening,” Ms Emmett added.

The ANZ economist said wages and productivity indicators contained in the growth report would also be watched carefully considering the Reserve Bank’s concern about unit labour costs.

As well as the quarterly health check on the economy, on Wednesday RBA governor Philip Lowe will deliver a speech at the Morgan Stanley Australia Summit in Sydney.

Dr Lowe will likely flesh out the case for lifting interest rates in June and hopefully indicate where the central bank is likely to move next.

The 25 basis point hike brought the cash rate above four per cent to rest at 4.1 per cent, its highest point since April 2012.

The governor did not rule out further tightening in his statement but the trajectory for interest rates will depend on how the economy and inflation evolve.

Deputy governor Michele Bullock is also expected to appear on a panel at the Australian Banking Association Annual Conference in Sydney.

–AAP