RBA to cut rates at July 8 meeting as economy expected to slow — Reuters poll

According to a Reuters poll, the Reserve Bank of Australia is expected to cut interest rates at its next meeting on July 8 as inflation falls, and economic growth is projected to weaken. 

Experts forecast Australia’s GDP to expand 1.6% this year and 2.3% in 2026. The April poll predicted the growth of 2% and 2.4%, respectively.

Economists and financial markets now see five rate cuts by the RBA in 2025. The Australian regulator had been previously forecast to reduce borrowing costs three times. 

Deutsche Bank says the central bank’s task now is to support GDP growth and keep the labor market strong. 

A majority of polled economists predict the RBA will cut rates by 25 basis points to 3.60% at its meeting on July 8. Six out of 37 respondents expect borrowing costs to remain unchanged.

More than 60% see another step of monetary easing this quarter, which would bring the RBA rate to 3.35%. The median forecast points to a year-end rate of 3.10%.