Home owners shouldn't hold their breath hoping for another cut in the official interest rate when the Reserve Bank Australia (RBA) board meets on Tuesday.
Economists are generally confident that the central bank's monthly meeting will leave the cash rate unchanged at a 49-year low of 3.0 per cent for a third straight month.
But they say two pieces of economic data released on Monday will keep the door ajar for another rate reduction in coming months, but are unlikely to be a shock to RBA governor Glenn Stevens or his team.
Money markets are pricing in little chance of a rate cut over the next couple of months, but see around a 70 per cent chance of a 25 basis point reduction before the end of the year.
"A re-read of the RBA's June statement suggests the only change may be the date," NAB Capital chief economist Rob Henderson said.
"The last statement said that scope remains for further easing down the track `if needed', but there is no urgency to cut."
The central bank cut the rate by a hefty 425 basis points between September last year and April in a pre-emptive strike to cushion the economy from the global reccession.
Data over the past month suggests consumers are more confident about spending, aided by cash handout from the federal government and low interest rate.
Essential Research's weekly online survey released on Monday showed that half of the 1,038 respondents polled believe economic conditions will be better over the next 12 months.
This is up from 43 per cent in June and well above the 19 per cent recorded in February.
Still, 56 per cent are concerned about losing their job, up from 52 per cent in June, although below the 67 per cent level seen in April.
A key indicator for future employment - the ANZ job advertisement series - suggests business confidence remains extremely weak and a "hiring freeze" remains in place.
The ANZ survey found the total number of jobs advertised in newspapers and on the internet fell for a 14th straight month in June, declining 6.7 per cent.
Total job ads have now declined by a staggering 51.4 per cent over the past year, with internet jobs ads at their weakest in at least 10 years.
"The weak global economic environment and uncertainty on how long the recovery process could take has seen employers attempt to keep costs under control," Commonwealth Securities economist Savanth Sebastian said.
"While employment has remained relatively strong over the last year, the risks are certainly to the downside over the next 12 months."
Official labour force data for June are due for release on Thursday.
Economists' forecasts centre on a rise in the jobless rate to 5.9 per cent from 5.7 per cent in May, which would be the highest level in six years.
The government is predicting an unemployment rate of 8.25 per cent by mid-2010.
The once ogre of inflation also appears to be firmly in decline, suggesting there is scope to ease monetary policy again down the track.
The TD Securities-Melbourne Institute Monthly Inflation Gauge showed annual inflation at just 1.4 per cent in the 12 months to June, well below the RBA's two to three per cent target range.
TD Securities senior strategist Annette Beacher expects inflation to continue undershooting the target until mid-2010, perhaps even longer.
She said the case for an imminent rate cut on inflation grounds "is compelling".
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