Mortgage holders could get a brief reprieve from further interest rate hikes, but economic uncertainty in the Middle East will still loom for the Reserve Bank.
Economists are tipping the central bank to keep the official cash rate on hold at 4.35 per cent when it meets on Tuesday.
Should the predictions hold, it would be the first time the Reserve Bank has kept rates steady since the start of 2026.
Despite inflation levels remaining above the Reserve Bank's target band of two to three per cent, economists expect it will consider the impact of consecutive hikes.
Westpac economists Luci Ellis and Neha Sharma said the mixed data on inflation and the labour market supported the case for a pause.
