ANZ has delivered fresh hope for Australian mortgage holders, forecasting the Reserve Bank could slash interest rates within weeks.

The big four bank expects a February rate cut of 25 basis points, which would take the cash rate from 4.35 per cent to 4.1 per cent.

WATCH THE VIDEO ABOVE: Two of Australia’s big four banks back February rate cut.

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The Commonwealth Bank believes the RBA will follow a similar timeline, although Westpac and NAB have a more conservative prediction of May.

The four banks are also split on how many cuts Australians can expect in 2025, with ANZ leaning towards only two “in this cycle — February and August 2025”.

“I don’t think anyone knows for sure, not even the RBA, exactly how many rate cuts they will need in this cycle,” Canstar data insights director Sally Tindall told 7NEWS.

According to Canstar analysis, the monthly savings from a single rate cut could be as much as $92 for a $600,000 loan.

Savings would rise to $115 for a $750,000 mortgage and $154 for people servicing $1 million loans.

“The RBA knows just how tough it’s been for people with a mortgage,” Tindall said.

“It wants to deliver rate relief as soon as the data allows.

“Just one rate cut could reduce monthly repayments by approximately $92 per month.

“That’s not exactly in line with winning the Lotto, but for some households, even this small amount of relief will help them make ends meet.”

‘Passed the toughest point’

ANZ expects trimmed mean inflation to come in at 0.5 per cent for the December quarter, the lowest since mid-2021.

A result like that would push the annual inflation rate to 3.2 per cent, below the RBA’s forecast.

ANZ senior economist Catherine Birch said “we think this will be enough for the RBA to cut the cash rate ... at its February meeting.”

“Either way, we do think that the Australian economy has passed the toughest point already,” Birch said on Friday.

All eyes are now on the all-important December inflation data which is due for release on January 29.

The Reserve Bank has its first board meeting on February 17 and 18.