Australia's central bank may deliver the first of two predicted interest rate cuts this week, putting banks under pressure to pass on the full reductions to their home loan customers.
The Reserve Bank of Australia's decision on whether to cut the official interest rate to a record low 1.25 per cent this week is expected to be a very close call.
But economists predict there will be a 25 basis point rate cut in coming months, followed by another reduction later in the year to 1.0 per cent.
