The Reserve Bank is not expected to provide any relief to borrowers when it announces it latest interest rate decision on Tuesday afternoon.
Experts are tipping that the RBA will keep the cash rate on hold at 4.35%.
RBA Governor Michele Bullock has previously warned it’s likely to be many more months before they’re in a position to start cutting rates with inflation still too high.
ANZ Senior Economist Catherine Birch says the RBA needs to strike the right balance.
“One of the risks if that if the RBA cuts the cash rate too soon is that inflation would stay too high and that’s not good for anyone,” Birch said.
“In particular it’s not good for lower-income households.”
There have been growing calls for the RBA to provide interest rate relief amid ongoing cost-of-living pressures and weak economic growth.
The US Federal Reserve last week slashed rates by half a per cent, raising hopes Australia may soon follow.
But Ms Birch says what happens overseas isn’t reflective of what’s going on here.
“Our inflation is still too high relative to our target, where as a lot of other economies are seeing inflation get closer to their central bank target.”
The Reserve Bank will announce its latest interest rate decision at 2.30pm on Tuesday afternoon.
