AMP Capital’s chief economist Shane Oliver said that having cut the rates in May, the Reserve Bank would prefer to “sit back and see if it’ll be enough”.

ING Direct’s head of treasury, Michael Witts, noted that the federal Budget appears to have “gained positive traction”, adding that nothing has fundamentally changed in the economy in the past month.

The RBA is likely to take a “wait and see approach”, added Mortgage Choice spokesperson Jessica Darnbrough.

“Given that the Reserve Bank of Australia cut the cash rate again in May, we believe they will take a wait and see approach to rates for the next few months at least until they see what impact the latest rate cut has on the economy,” Ms Darnbrough said.