The Reserve Bank of Australia is expected to leave interest rates on hold today when it finishes its two-day meeting.

In February, those with mortgages saw a significant change with the first reduction in the cash rate in five years. However, it’s expected that the Reserve Bank of Australia (RBA) will keep the rate steady at 4.10 percent when they make their announcement at 2:30 PM AEDT.

Hopes for a further reduction have been lifted by last week’s inflation figures showing headline inflation is within the target range of the RBA.

The latest data from the Australian Bureau of Statistics indicated that the consumer price index (CPI) showed headline inflation had decreased to 2.4 percent over the year ending in February. This figure remains well within the central bank’s target range and is a slight drop from 2.5 percent recorded the previous month.

But other factors should ensure the RBA errs on the side of caution today.

Meanwhile, US President Donald Trump is expected to declare “Liberation Day” on Wednesday, which will be Thursday AEDT, as he prepares to introduce a new set of extensive tariffs.

Worries that they will worsen inflation in the US and other countries, including Australia, and grind down growth for economies has resulted in falls on global stock markets.

On Wall Street overnight, the S&P 500 was down 1.3 per cent following one of its worst losses of the past couple of years last Friday. It’s on track to finish the first three months of the year with a loss of 6.4 per cent, which would make this its worst quarter in nearly three years.

Leading up to last week’s inflation numbers, economists had been extremely sceptical of a rate cut today with the market pricing in a 92 per cent chance the cash rate will remain on hold at 4.10 per cent.

Another factor for the RBA to consider is the current federal election campaign, with the central bank wanting to keep a low profile up to polling day on May 3.

A bright spot for mortgage holders is that economists are tipping a reduction in the cash rate next month.