RBA eyes back-to-back rate cuts as US tariffs weigh on outlook — Bloomberg

For the first time in six years, the Reserve Bank of Australia (RBA) is considering back-to-back interest rate cuts. As reported by Bloomberg, the central bank may begin its easing cycle amid slowing inflation and global economic uncertainty fueled by US trade policies.

According to the news agency’s survey, most analysts and market participants expect the RBA to lower borrowing costs by 25 basis points to 3.6%. That would bring total reductions in the current cycle to 75 basis points.

Westpac's Luci Ellis says the Australian central bank has no reason to delay monetary easing until August. However, the regulator's next moves will depend on domestic economic indicators rather than global risks.

Investors are now focused on upcoming remarks from RBA Governor Michele Bullock, which may clarify the central bank's stance. Markets are pricing in two more consecutive rate cuts this year, potentially bringing rates down to 3.1%. However, Bloomberg notes that many analysts expect a pause at 3.35% to assess the impact of previous easing measures.