RBA expected to cut rates due to slowing economy, with further cuts predicted.

Economists predict the Reserve Bank of Australia will cut rates more than expected due to slowing economy and easing inflation. A third 25 basis point rate cut is expected on July 8, with a majority of economists forecasting further cuts in August. The economy is projected to grow 1.6% this year and 2.3% in 2026.

The RBA’s rate cut path is steeper than anticipated due to softer consumption and global headwinds. Inflation cooled to 2.1% in May, expected to average 2.6% in 2025 and 2.7% in 2026. Despite rate cut expectations, the Australian dollar has gained over 6% this year, forecasted to strengthen further.

Read more at Yahoo Finance: RBA expected to cut rates for third time on July 8 as economy slows: Reuters poll