Overview

• Westpac chief economist Luci Ellis predicts 0.25 percentage point cuts in August, November, February and May to lower the cash rate from 3.85 per cent to 2.85 per cent by early 2026.
• NAB expects three rate reductions starting in July, while Commonwealth Bank and ANZ foresee two cuts from August if conditions warrant.
• Markets and economists widely anticipate the RBA will hold the cash rate at 3.85 per cent in July before potential easing in August.
• Canstar estimates that a homeowner with a $600,000 mortgage could save about $349 per month if Westpac’s four predicted cuts occur.
• Weak consumer spending, soft GDP growth and a cooling labour market underpin forecasts for further monetary policy easing.