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

The money is on a rate cut but chatter about US tariffs imposed by Donald Trump could interrupt the predicted cycle

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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.