Financial markets are becoming near certain the Reserve Bank of Australia (RBA) will cut interest rates next month. The Board will meet in early July to decide whether to hike, hold or drop the cash rate from its current level of 3.85 per cent.

Interest rates have been cut twice already in February and May, giving homeowners roughly $168 extra in their pockets per month. But the ASX 30 Day Interbank Cash Rate Futures, which looks at the likelihood of interest rate movements, said there is a near 90 per cent chance of another rate cut in a few weeks.

That's up from a 59 per cent chance at the end of May.

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Why RBA could cut interest rates at July meeting

While inflation is in the RBA's target zone, the rest of the economy is struggling.

The Australian Bureau of Statistics (ABS) revealed last week economic activity had grown just 0.2 per cent in the March quarter, down from 0.6 per cent in the December quarter.

Per capita, GDP went backwards again and was down 0.2 per cent in the quarter and 0.4 per cent for the year.

The RBA had forecast annual GDP growth of 1.8 per cent by the end of the June quarter.

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Additional data released on Thursday found consumer spending rose by only 0.1 per cent in April.

Employment numbers came out a day after this and showed the number of jobs across the economy had dropped 0.2 per cent in the March quarter to 16.3 million.

Experts believe these figures have strengthened the case for another interest rate cut of 25 basis points to 3.60 per cent.

Slashing the cash rate could help increase consumer spending and lift this lagging economic activity.

Commonwealth Bank senior economist Stephen Wu said while the bank has tipped August to be the next chance of a cut, this new data has made July a "live" option.

How much would I save with a July interest rate cut?

If the RBA cut rates again by 0.25 per cent, a person with a 30-year $600,000 loan and 6 per cent interest rate could save $82 per month.

If you combine the other two rate cuts from this year, that would be a monthly saving of $250.

Economist Warren Hogan has called on the RBA to deliver a jumbo rate cut next month of 0.35 per cent.

That would be a saving of an extra $37 a month, compared to a standard 25 basis point cut.

A poll of more than 11,600 Yahoo Finance readers found 67 per cent of homeowners would need about four rate cuts to feel financially secure.