The four major Australian banks unanimously expect the Australian Federal Reserve to cut interest rates today

All four major Australian banks predict that the Reserve Bank of Australia will cut interest rates by 25 basis points today, but they have different views on the bank's actions after the rate cut. The two largest banks in Australia, Commonwealth Bank of Australia and Westpac Banking Corporation, believe that there will be a total of four rate cuts by the end of this year, which would reduce cash rates to 3.35% before December. Among the four major banks, National Australia Bank was the last to join consensus that there will be a rate cut today; however it is actually more optimistic about monetary policy easing this year: its economists expect a total of five rate cuts in 2025. Another extreme prediction comes from ANZ Banking Group Ltd., which expects only two rate cuts for the whole year with official cash rates dropping to 3.85% by December.