Commonwealth Bank, HSBC and Citi are betting that Australia's central bank will cut interest rates more steeply than previously thought as global trade tensions ratchet up and domestic hiring intentions slow.

CBA has announced that it will completely exit thermal coal by 2030. Credit:Michael Clayton-Jones

Economists at CBA, Australia's biggest bank by market capitalisation, said in a note on Thursday they expect one 25 basis point (bps) easing in November followed by a second in February, taking the key rate to 0.5 per cent. Earlier, they had predicted just one cut to 0.75 per cent.

HSBC and Citi followed up with a similar predictions of two cuts.

HSBC had expected the Reserve Bank of Australia (RBA) to halt its current easing cycle after two back-to-back reductions in June and July to a record low of 1 per cent. Citi had earlier forecast another easing to 0.75 per cent.