Inflation fading but rate cut doubtful at least for now

Mortgage holders may soon get a better idea of when they can expect another interest rate cut as the Reserve Bank's boss defends the timing of its moves.

Governor Michele Bullock will face questions from federal parliament's economics committee on Monday about interest rates, sluggish productivity and planned changes to card payment surcharges.

The appearance will be her first at a parliamentary hearing since the RBA board started cutting rates in February and the first since the federal election in May.

It comes as the Australian Bureau of Statistics prepares to release August inflation data on Wednesday, giving the central bank some indication of Australia's economic temperature.

Analysts expect a small fall in the RBA's preferred measure of underlying inflation but not enough to del