The Reserve Bank of Australia (RBA) will likely cut interest rates by 25 basis points in August and may deliver another rate cut in September if the board members feel the need to support growth, according to Bank of America/Merrill Lynch. 

The RBA shifted away from its long-held tightening bias in early February and calls for a rate cut have been increasing ever since.

The central bank held the official cash rate at a record low 1.50% earlier this week. The RBA last moved the needle on policy in August 2016 when rates were cut from 1.75 percent to 1.5 percent.