The Reserve Bank of Australia is expected to cut its cash rate on Tuesday, easing borrowing costs as national home prices decline for a fourth consecutive month amid weakening consumer sentiment. Economists at Australia's major banks have widely anticipated the move ahead of the board's decision in Sydney.

Property data released this week showed home values slipping across most capital cities, with regional centres including Townsville and Cairns recording their first falls in years. CoreLogic figures indicated that only one capital city managed price growth in the latest month, ending a prolonged run of gains in several markets.

The housing downturn has been driven by earlier rate increases, budget uncertainty and persistent cost-of-living fears that have curbed household spending. Analysts at Commonwealth Bank and Westpac had forecast that softening inflation would give the RBA room to ease policy and support demand.

A rate cut would lower mortgage repayments for millions of Australian homeowners and could stem further declines in property values. However, RBA Governor Michele Bullock has previously cautioned that the board remains focused on returning inflation sustainably to its target band before committing to a sustained easing cycle.

Markets will scrutinise the accompanying statement for guidance on the pace of future cuts, with traders pricing in additional easing later in the year should the property market and broader economy continue to weaken.