An interest rate cut is expected as early as this week in Australia after job ads slid for the 11th month in a row and domestic prices continue to fall.

Stephen Koukoulas, Global Strategist at TD securities, said a cut of half a percent is expected to drop interest rates to 2.75 percent.

The Australia and New Zealand Banking Corp (ANZ) has predicted the jobless rate in Australia to top 8 percent in 2010 and the economy as a whole to contract by 1 percent this year.