Reserve Bank of Australia to cut rates three more times by early 2026 — Bloomberg poll

According to economists polled by Bloomberg, the Reserve Bank of Australia (RBA) will deliver three rate cuts by early next year. Previously, a similar survey suggested only two such steps during this period.

The agency's survey involved 40 specialists. According to their median estimate, the RBA will lower the cash rate to 3.1% in the first quarter of 2026 from the current 3.85%. Afterward, the regulator is expected to take a long pause in its actions regarding interest rates.

Bloomberg notes that the pace of borrowing cost reductions in Australia is quite rapid, especially when compared to the US Federal Reserve. The American central bank has not yet cut rates this year.

Nevertheless, it is worth noting the RBA's decision this month to leave the cash rate unchanged despite expectations of a cut. According to the minutes of the last meeting, the regulator's officials considered the July cut unnecessary, given the need to take a cautious approach to changing monetary conditions.

According to Luci Ellis, chief economist at Westpac Banking, the release of updated data on the Australian economy by August makes a rate cut in the last month of summer more likely.