Inflation will return to the Reserve Bank of Australia’s target for the first time in four years, and investors expect the central bank to cut interest rates in a bid to bolster confidence amid a volatile economic outlook.

But next month’s cut is predicated on official consumer price data to be released this week, leaving the S&P/ASX 200 on a knife edge as investors wait for the crucial inflation figures to be published. Futures indicate that the local benchmark will open unchanged from its Thursday close.