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.
- On Tuesday, the Reserve Bank of Australia held its cash rate at 3.85%, defying market expectations of a cut, amidst cautious outlooks on inflation and global risks.
- After the hold, the RBA board waited for more inflation evidence amid a resilient labour market and two rate cuts this year.
- The RBA held the cash rate at 3.85%, with a 6-3 vote split, and the Australian dollar rose 0.8% following the surprise decision.
- The RBA's decision to hold rates at 3.85% surprised markets and was driven by cautious outlook amid resilient labor data and global uncertainty.
- The RBA's next meeting on August 11–12 will monitor global and domestic trends, aligning with Fed and BoE pauses amid ongoing economic uncertainty.
75 Articles
75 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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