The Reserve Bank of Australia (RBA) is widely tipped to leave its key interest rate unchanged at today’s monthly board meeting.

And the even better news for borrowers coping with 12-year high interest rates is that the central bank may suggest lower rates are on the way, economists say.

They expect the RBA will leave its key cash rate at 7.25 per cent for a fifth straight month, but it may highlight the downside risks to economic growth after the dour readings on the economy in recent weeks in its accompanying statement.

The RBA will announce its rate decision at 2.30pm AEST.

The RBA raised rates four times between August last year and March to try to bring inflation under control after it spiked above an annual rate of four per cent.

This is well outside the central bank’s two to three per cent inflation target.

“We do have to remember inflation is at a 16-year high, so the RBA is not going to be rushed into cutting interest rates,” ANZ senior economist Katie Dean said.

“We think they are more likely to stay on hold at least one more month.”

Yesterday’s data showing a fall in average house prices and a further decline in job advertisements follows a steady stream of weak data - including retail spending falling to recessionary levels, tumbling demand for mortgages and a growing slump in consumer and business confidence.

The RBA has raised the cash rate 12 times since May 2002, and last cut it in December 2001.

AAP