Budget relief could come as early as next month, RBA hints

Budget relief could finally be on the way for struggling Aussies after Reserve Bank Governor Philip Lowe hinted at a rate rise pause.

Australian Financial Review economics editor John Kehoe facilitated a discussion with the Reserve Bank boss at the Australian Financial Business Summit and said the RBA is looking at four things over the next couple of months.

He said inflation data, consumer spending, employment and business surveys will be on the agenda and a pause on interest rate rises could come soon.

READ MORE: Finance guru's warning over rate hikes

"Philip Lowe says he has a completely open mind going into the April board meeting and it is going to be a month-by-month proposition," Kehoe said.

"I think the most likely outcome is they raise interest rates next month and they will more seriously consider a pause in May depending on the flow of that economic data."

Kehoe said the RBA expects to see a rebound in February.

If there is a big plunge in consumer spending or inflation comes in a lot softer than expected, that pause could come sooner rather than later.

See what else Kehoe had to say about the discussion with the RBA Governor in the video above

Join the Today show family and give yourself the chance to win great prizes by signing up to our weekly newsletter, delivered straight to your inbox every Wednesday with a special message from Karl and Sarah. You can sign up for free here.