Krishna Bhimavarapu, APAC Economist at State Street Global Advisors, said the central bank should act to safeguard economic growth as inflation pressures continue to ease.

"We are convinced that the RBA needs to cut in July to safeguard growth as inflation is clearly out of their way now: the trimmed-mean CPI at 2.4% is the lowest since November 2021," he said.

Bhimavarapu said weak consumption and growth trends in the second quarter supported the case for early monetary policy easing.

"We are tracking faint consumption and growth in Q2, and hence, the Bank may do well to frontload the cut to July," he said.

However, the economist suggested the central bank may take a measured approach to further rate reductions after an initial cut.

"We think the cash rate might still end the year at 3.10%, as the RBA might take a pause after frontloading cuts," Bhimavarapu said.

State Street Global Advisors is part of State Street Corporation, one of the world's leading providers of financial services to investors with US$46.8 trillion in assets under custody and administration, and $4.7 trillion in assets under management.