Reserve Bank tipped to cut cash rate amid growing confidence Australia’s inflation is being tamed

One expert believes confidence that inflation is being brought under control, not that the Australian economy needs a boost, will guide the RBA’s decision on a cash rate cut. Photograph: Mark Baker/AP

The Reserve Bank is expected to cut the cash rate on Tuesday, easing pressure on indebted households grappling with high living costs and elevated mortgage repayments.

Market pricing implies a 95% chance the level will fall by a quarter point to 3.85%, amid growing confidence that inflation is being tamed.