Australian mortgage holders are expected to avoid another interest rate rise on Tuesday, but any meaningful relief remains out of reach for now.

The Reserve Bank of Australia (RBA) is widely expected to leave the official cash rate unchanged when it hands down its latest decision, keeping borrowing costs at their current level as households continue to grapple with cost-of-living pressures.

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The anticipated hold follows a surprise easing in inflation, which fell from 4 per cent to 3.8 per cent.

The RBA will closely consider the latest fall in inflation as it weighs the need to keep price pressures under control against the impact of higher borrowing costs on households. 

However, while the figures have taken some immediate pressure off the RBA to raise rates this time around, economists have warned borrowers are not out of the woods yet, with another hike considered likely before the end of the year.

Such a move would push the official cash rate to an almost 15-year high and add further pressure to already stretched household budgets.

Finance Minister Katie Gallagher told Sunrise on Tuesday the government has been working to ease the cost-of-living burden on Australian families.

She noted inflation has moderated in recent months but warned international developments, including the war in the Middle East, continued to put pressure on Australia’s inflation figures. 

“We’ve been dealing with an inflation pressure in our economy for some time now, and this has been reflected and seen around the world,” Gallagher said.

“The steps the government’s taken have been to really try and do what we can to provide relief to households and families through Medicare, cheaper medicines, all of the investments we’ve made in energy bill relief and tax cuts to take some of the edge off those impacts.”

Finance Minister Katie Gallagher said the government has been working to ease the cost-of-living burden on Australian families. Credit: Sunrise/AAP

When asked about suggestions from economists that the RBA would be better off raising rates now rather than waiting until just before Christmas, Gallagher said most households would be hoping to avoid another increase altogether.

“I’ll let the market have its own view ... Our job is to make sure that as a government we’re doing what we can to support the work of the Reserve Bank and to help households with those cost-of-living pressures,” she said.

For borrowers, an expected hold today means repayments are unlikely to get any cheaper, but, the lack of a rise will surely be welcome news.