Mortgage holders are heading for one further interest rate cut his year, but it could be the last for a while.

That is the prediction from the Commonwealth Bank of Australia (CBA), the country’s biggest, as consumers continue to spend with confidence.

It says recent figures showing the Australian economy picking up momentum more than forecast, backs the Reserve Bank of Australia (RBA) making another rates cut.

“With the broader economy showing signs of resilience and the consumer returning to a more solid footing, we don’t see the need for the RBA to go much further,” CommBank head of Australian economics Belinda Allen said.

“We continue to expect just one more cut in November, but no change at the RBA’s September meeting.”

The move would reduce interest rates to 3.35 per cent from 3.60 per cent.

The CBA’s household spending intentions index revealed consumer spending last month rose 0.3 per cent.

This followed a 0.7 per cent lift in July and 0.5 per cent rises in May and June.

Australians last month splurged more in nine of the 12 categories, headed by utilities, communication, recreation and education.

In contrast, spending on insurance, household goods and food and beverage dipped.

“We’ve now seen six months of solid growth, reinforcing our view that a consumer recovery is underway after a series of false starts last year and early into 2025,” Allen said.

“The combination of growing incomes, a solid labour market and lower interest rates is helping improve household sentiment as consumers are able to both spend and save again.”