Two more interest rate cuts this year and another in February could help clear Australia's lingering economic clouds, according to a Thursday statement by Bendigo Bank's Chief Economist David Robertson.

With inflation now at or below the Reserve Bank of Australia's target and risks of a rebound continuing to erode, Robertson said the need for the Reserve Bank of Australia (RBA) to cut rates is building.

Softening US inflation and a rise in Australia's unemployment rate to 4.3% further strengthen the case, and Robertson expects the RBA to cut rates next Tuesday, potentially by a larger-than-usual 35 basis points.

Robertson forecasts rates to fall to a neutral 3% to 3.25% by February, and believes that a rate relief is vital for households and small businesses still recovering from the inflation shock.