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Australia's leading index improved in June but remained consistently negative, data from Westpac showed on Wednesday.

The Westpac- Melbourne Institute Leading Index that indicates likely pace of economic activity over the next nine months, rose to -0.02 percent in June from -0.47 percent in May.

The Leading Index growth rate has lifted over the last six months from -0.36 percent in January. Two components that supported the improvement were S&P/ASX 200 and dwelling approvals.

Westpac expected a further 25 basis point rate cut, coinciding with a downgrade to the Bank's growth and inflation forecasts in November, Bill Evans, Westpac chief economist said.