All eyes will be on the Reserve Bank today, with the RBA set to hand down its first cash rate decision of the year.
It comes in the wake of inflation slowing to its lowest level in two years at 4.1 per cent, prompting calls for the bank to start slashing rates immediately.
However, the cash rate is widely expected to remain unchanged at 4.35 per cent, with the first rate cut unlikely until at least June.
The decision will be announced on Tuesday afternoon and will be followed by a press conference held by RBA governor Michele Bullock to explain the bank’s economic outlook.
It comes just days after Queensland Premier Steven Miles demanded the RBA start cutting rates, even suggesting the banks should pre-empt the move.
“The Reserve Bank needs to start cutting interest rates now to take pressure off households,” the Premier said.
“There’s no rule the banks can’t cut their rates first. Many of them lifted their rates before the RBA.
“These big four banks are making billions of dollars in profits off our mortgages, off Queensland’s mortgages, and they should cut rates as soon as they possibly can.”
