The Reserve Bank will keep the cash rate on hold this week for the fifth policy meeting in a row as it looks for evidence that price pressures are moving sustainably lower amid a slowing economy, tight job market, and elevated levels of inflation.

Complicating the central bank’s task to return inflation to target is a slightly expansionary Albanese government budget, according to an RBA internal analysis, which comes as wage growth is rising with looming tax cuts and energy rebates.