Australia's big four banks are already promising to pass interest rate cuts on in full after the Reserve Bank lowered the cash rate by 25 basis points.
Hopes of end-of-year rates relief have been dashed as the Reserve Bank of Australia stays on hold and the board warns underlying inflation remains "too high".
Central Bank Governor Michele Bullock expects headline inflation to drop into target on Wednesday, so why is she warning against near-term interest rate cuts?
Mortgage holders can breathe a sigh of relief following the Reserve Bank's decision to leave interest rates on hold at 4.35 per cent, as widely expected.
Mortgage holders have been granted another month of interest rate relief after the Reserve Bank of Australia left monetary policy unchanged, as expected.
More interest rate hikes are broadly off the table but the Reserve Bank governor is likely to keep her options open in a big week of public appearances.
The minutes from the December interest rate meeting will outline the Reserve Bank's thinking on inflation as households gear up for the festive season.
Consumer confidence has taken a hit after interest rates rose again, with businesses also cautious about the outlook despite overall economic resilience.
