A significant interest rate cut is tipped for this afternoon when the Reserve Bank of Australia hands down its decision.

The bank's board met yesterday and will convene again today to make its decision on the national cash rate.

It's anticipated RBA Governor Michele Bullock will announce a cut of 0.25 per cent, in line with the predictions of the big four banks.

That would bring rates down from 3.85 per cent to 3.6 per cent.

Not only would 3.6 per cent be the lowest rate since the COVID-19 pandemic, a cut today would signify the first back-to-back cuts from the RBA in years.

A cut would be welcome news for mortgage holders and other major borrowers, who have faced years of aggressively increased interest rates the RBA pushed up to fight soaring inflation.

However, while some economists have warned the country isn't completely out of the woods yet, the RBA has signalled that it believes inflation is manageably within its target rate of 2 to 3 per cent.

And more relief could be coming in the near future, with another rate cut forecast for this year.

The RBA will hand down its decision 2.30pm AEST.

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