Economists expect the Reserve Bank of Australia to announce a reduction in interest rates for the third consecutive month on Tuesday.
Rates were previously cut by 0.25% in November and December last year.
Another cut would take Australia's lending rate to 4%.
However, the futures market is more equivocal, putting the odds at a little over 50%.
Australia posted an inflation rate of zero in the December quarter, but Radio New Zealand's Sydney correspondent says no-one really believes it.
The devil was in the detail. A big contributor to the zero CPI was a fall of almost 50% in the price of bananas after the Queensland floods wiped out the annual crop.
Over the full year, Australia's inflation rate was just over 3%, but that masked some divergent trends.
The prices of food, appliances, electronic goods all fell, but insurance premiums, childcare, water and sewerage, petrol and electricity all rose.
