Economists at Westpac are expecting the RBA to follow up yesterday's 25 basis point cut with another next month.
It says, the RBA has acknowledged an even lower than expected trajectory for inflation, which may leave it open to further cuts down the track.
Westpac does expect confidence to soften and weaker business investment.
That may prove to be a blessing in disguise for the government, with business capital expenditure numbers out just before the election.
If weak, it may be enough for the RBA to once again cut the cash rate, to stimulate the economy.
Westpac predicts the official cash rate to bottom at 2 per cent by the first quarter of next year as global growth slows.
If the banks do pass these cuts in full, there is every chance variable rates will be lower than the special 4.99 per cent 3- year fix term rates offered a few months ago. Remember, the banks usually offer a discount to the advertised standard variable rate.On the dollar front, its June 2014 target for the Aussie is US96c.
It's a slightly different view to Clifford Bennett from White Crane Report who spoke to SBS World News Australia last night.
He says there is a chance of one more interest rate cut, but expects the Australian dollar to remain above its current level.
He believes the mining boom will continue thanks to strong demand from China, which in turn will support property prices and that investors in the sharemarket will continue to ride one of the biggest bull run in history.
