US EditionAustralia unexpectedly holds policy rate as it awaits more inflation data
AUSTRALIA, JUL 8 – The Reserve Bank of Australia postponed further cuts due to inflation uncertainty and a strong labor market, with six of nine board members voting to maintain the 3.85% cash rate.
- The Reserve Bank of Australia held the cash rate steady at 3.85 percent in July, defying expectations of a rate cut.
- The central bank delayed easing to gather more data, citing uncertainties over inflation, wages, pricing, and recent policy lags.
- Economic growth slowed to 1.3 percent in Q1, missing forecasts, while domestic demand showed signs of rising despite weakening consumer spending and exports.
- Financial markets experienced fluctuations as the Australian dollar climbed to 65.5 US cents, while the S&P/ASX 200 slipped by 0.24%.
- The bank remains attentive to evolving risks and the upcoming June quarter inflation data before considering future rate changes.
67 Articles
67 Articles
Future Interest Rate Cut Still in the Mix: RBA Governor
Australians hoping for rate relief may not have to wait long. The Reserve Bank has put rate cuts on hold—for now—but left the door wide open. At its July 9 meeting, the RBA kept the cash rate steady at 3.85 percent, with Governor Michele Bullock emphasising the pause was about “timing, not a change in direction.” The move was met with disappointment from the treasurer and retail association. The bank is holding out for stronger evidence that inf…
Reserve Bank holds interest rates at 3.85%
The Reserve Bank has disappointed borrowers and gone against market expectations by holding interest rates at 3.85% at today's board meeting. It wasn't a unanimous decision - but the RBA ultimately decided it could afford to wait a little longer, to make sure inflation is moderating sustainably.
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