The Reserve Bank is all set to hold interest rates for this year as it waits for an improvement in wages and inflation to complement a likely steady strengthening in economic growth.
The central bank is expected to leave the cash rate unchanged at a record low of 1.5 per cent at its December board meeting on Tuesday - for the 16th straight month, an AAP survey of 13 economists shows.
RBA's next board meeting is scheduled for February, which would push any decision well into the first quarter of next year.
However, only two of the 13 economists polled think the RBA will start lifting rates earlier than the second half of 2018.
While a jump in employment in the second half of 2017 has indicated an improvement in labour market conditions, soft wages growth and the resulting pressure on inflation continue to be a major concern for the regulator.
RBA governor Philip Lowe last month highlighted Australia's limp wages growth as one of three key questions occupying the central bank at present.
Even though the unemployment rate is partly responsible for this, there are "structural" factors driven by perceptions of competition and changed workplace power relationships, he noted in a speech, adding that the current situation may persist "for a while".
Third quarter GDP data, due later in the week, could boost the RBA's confidence on growth forecasts, but no change is predicted on Tuesday, NAB chief economist Ivan Colhoun said.
"The Bank will want to see some further reduction in spare capacity in the labour market to be more confident that wages growth will pick up, something that we expect to be evident in the first half of next year," he said.
Economists widely expect GDP to increase by between 0.7 and 0.8 per cent in the September quarter, taking annual growth close to the target of 3.0 per cent.
The central bank has plenty of breathing space before needing to decide on its next policy move, CBA economist John Peters says.
"Solid jobs growth is exerting some downward pressure on the national unemployment rate," he said in a note.
"But, given there is plenty of spare capacity (labour underutilisation) in the jobs markets, wage pressures are not expected to fuel inflation anytime soon."
The Reserve Bank will announce its interest rate decision at 1430 AEDT on Tuesday.
