The RBA is expected to cut rates on Tuesday. Will Australia enter a new economic era, and what happens if it doesn’t?

Reserve Bank of Australia governor Michele Bullock. Will the RBA cut interest rates on Tuesday? Photograph: Bianca de Marchi/AAP

The Reserve Bank of Australia is expected to cut the official cash rate on Tuesday, raising hopes among mortgage holders that the era of high interest repayments will finally start to unwind.

But central bank watchers warn that people should not expect an avalanche of cuts, amid lingering concerns about inflation and the fallout from Donald Trump’s tariffs.