While some economists see it as an each-way bet, most are tipping the Reserve Bank will deliver a Melbourne Cup rate cut as it tries to prime the economy for the end of the mining boom.
The RBA is widely expected to cut the cash rate by a further 25 basis points, dropping it to 3 per cent, after some recent data cast doubt on the strength of the economy.
That would be the lowest the cash rate has been since September 2009 at the height of the global financial crisis.
In the minutes from its last meeting, the RBA noted that areas beyond the mining sector needed to be strengthened to support growth as the mining boom wanes.
Nomura rates strategist Martin Whetton believes that means rates will be lowered again today.
"There is an expectation from the Reserve Bank that the mining boom ends sooner and that they are expecting the foreign-exchange-sensitive areas of the economy - manufacturing, education, tourism - to pick up where mining left off," he said.
"For that reason we think that there'll be a cut of 25 basis points for the RBA." Recent figures point to a continued slide in job advertisements, lacklustre retail sales, and a spike in inflation.
Ben Jarman from JP Morgan says he expects rates will remain on hold because the RBA's already factored these in.
"The fact that the economy is probably going to lose momentum over the second half of the year has been part of their narrative," Mr Jarman said.
Federal Opposition Leader Tony Abbott says if rates are cut, it will not be a sign of economic strength.
"That will be a sign of general economic weakness," he said.
"Cutting interest rates at the moment sure would be helpful, but it would be a sign of the Reserve Bank's fundamental angst about the state of the local and international economy." Prime Minister Julia Gillard says it shows Mr Abbott does not understand the economy.
"He'd want to walk up into the home of an Australian family buying a house and say 'I don't believe you should have an interest rate reduction'," she said.
"I mean what a ridiculous thing to say, what an offensive thing to say." The RBA has adjusted interest rates every Melbourne Cup Day for the past six years.