Australians are optimistic a rate cut could be on the way as the cost of living crisis continues to bite

As featured on ABC news, by Patricia Karvelas

Australians are increasingly optimistic that cost of living pressures are about to ease and expect to receive an interest rate cut soon, according to new polling.

Research conducted by Talbot Mills Research of 1,000 Australians found most were expecting interest rate reductions within the next year.

Some 32 per cent of those surveyed were expecting rates to come down in the next six months and a further 30 per cent in the next seven to 12 months.

Only 11 per cent were expecting a rate reduction to be more than a year away. Twenty-seven per cent were unsure.

Those polled said they had cut spending significantly, even on items that aren't discretionary.

The top three areas where Australians had cut spending a lot, or a fair amount, were clothing (53 per cent), pubs and restaurants (52 per cent), and groceries (48 per cent). Forty-one per cent had made cuts to health and dental; 40 per cent on beer and wine, and 34 per cent on insurance.

The Reserve Bank left interest rates on hold at 4.35 per cent at its most recent meeting.

The cash rate will remain at 4.35 per cent for at least another six weeks when the RBA board next meets in early November.