Money markets and economists are in near-unanimous agreement that the Reserve Bank's monetary policy board will hold the cash rate steady at 4.35% when it wraps up its latest two-day meeting on Tuesday.
But rate watchers will get a new set of economic forecasts and Reserve Bank commentary to pore over for signs of where interest rates will go next.
Inflation still above target
At 3.6%, the quarterly trimmed mean - the central bank's preferred measure of inflation - is still well above its 2 to 3% target range.
But the June outcome was lower than the 3.8% figure in the Reserve Bank's May forecasts. That prompted traders to slash the odds of the bank staying on hold for the rest of the year.
Despite the better-than-expected inflation data, Bullock will want to keep the door open to future rate hikes, given the uncertain outlook.
Middle East conflict clouds the outlook
The re-escalation in the Middle East also risked reigniting inflation after it eased in June, Commonwealth Bank head of Australian economics Belinda Allen said.
Oil prices have jumped since the start of July but remain significantly below their peaks during the first phase of the conflict.
The weaker demand environment will also give businesses less scope to pass on higher costs, Allen said. But it won't be possible for the Reserve Bank to tell until September quarter data later in the year, meaning the earliest opportunity for another hike will be November.
Economists at all four big banks expect the Reserve Bank's next move will be down rather than up.
