Sliding iron ore prices and the still-too-high Australian dollar are fuelling expectations that the Reserve Bank will be forced to cut interest rates next week.

The market is now pricing in a 70 per cent chance of a 25 basis point cut when the RBA board meets on April 7, after the price of iron ore slumped to $US52.90 a tonne overnight – its lowest level since records began in 2008. The dramatic moves dragged…