Economists Unanimous on RBA Cut to 3.60% Ahead of 12 August Meeting

The Reserve Bank of Australia is expected to lower its cash rate by 25 basis points to 3.60% at its 12 August policy meeting, according to a Reuters survey of 40 economists who were unanimous in their forecast. Cooling inflation, which eased to 2.1% last quarter, and a rise in unemployment to 4.3% in June have strengthened expectations that the central bank will resume easing after pausing in July. Sluggish household demand—responsible for more than half of economic growth—has also reinforced the case for looser policy. A large majority of respondents—35 of 38 who offered views beyond next week—predict at least one additional quarter-point reduction, taking the cash rate to 3.35% by the end of 2025. Australia’s four major banks—ANZ, Commonwealth Bank, National Australia Bank and Westpac—share that view.