ANZ Weekly: RBA could cut rates further, as headwinds mount

Although the direct impact of US tariffs on the Australian economy is likely to be modest, we believe second-order effects could be more damaging, due to negative spillovers from key trading partners in Asia. Meanwhile, the outlook for domestic demand is also looking more precarious, with new data pointing to sluggish growth in consumer spending. Against this backdrop, there is a growing risk that the RBA will loosen policy more than we're currently anticipating.