The basic idea is that interest rate cuts increase disposable...

The basic idea is that interest rate cuts increase disposable incomes of those with mortgages, credit outstanding etc. More to spend, stimulating the economy. Doesn't always work that way, but that's the premise. Recently interest rate cuts have potentially had a negative impact on sentiment, which also drives spending.

The expected cut today is intended to try and stimulate consumer spending in the wake of bushfires & through this virus fear.