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The board will announce its official rate decision at 2.30pm (AEST) and publish its revised set of economic forecasts.
Ahead of the two-day meeting, economists agreed that the RBA would keep interest rates at 4.35 percent, the level they have been at since last November.
But stubborn inflation data prompted warnings that mortgage borrowers could face more pain in the coming months.
In the 12 months to March, the consumer price index rose 3.6 per cent, above the RBA’s indicative forecast of 3.5 per cent.
That figure was also above the central bank’s target of 2.5 percent, which it aims for by 2026.
Among those who warned of the threat of inflation to Australia’s economy was former RBA Governor Philip Lowe.
“I understand that most people are hoping that the peak has been reached, and maybe it is, but it may not be,” he said.
“People have been asking me [about rates] all year and I’ve been reminding them that there’s still two-way risk.”
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