Australia's economic growth is expected to stay subdued for the rest of the year, although economic conditions in the country are likely to improve slowly, according to a survey released on Wednesday by the Westpac Banking Corporation and the Melbourne Institute.

The annualized growth rate of the Westpac-Melbourne Institute Leading Index, which indicates the likely pace of economic activity as three to nine months into the future, was 2.4 percent in June, below its long term trend of 2.7 percent.

The annualized growth rate of the Coincident Index, which gives a pulse of current activity, was 3.7 percent, above its long term trend of 3.1 percent, the survey showed.

Westpac chief economist Bill Evans said that while Australia's economic growth would be moderate in the second half of 2012 and into 2013, conditions would improve.

"Westpac anticipates that more robust growth outcomes for 2013 will require further interest rate relief, particularly given global fragility and also given the strength of the Australian dollar at a time of weakening global commodity prices," Evans said in a statement.

He said Westpac did not expect another cash rate until the December quarter.