RBA keeps cash rate unchanged at 3.85%
By Sophia Rodrigues
Published On 08 Jul 2025 , 02:53 PMThe Reserve Bank of Australia left the cash rate unchanged at 3.85%, defying market expectations for a 25bps cut.
The Monetary Policy Board judged it could wait for a little more information to confirm inflation remains on track to reach 2.5% on a sustainable basis.
The RBA move to go against very lofty market pricing (nearly 90%) for a cut is unprecedented, but in doing so, it sent a signal it will not "follow" the market.
It was the first time the board published unattributed votes, and it was 6-3 in favor of Hold.
CB Intel wrote last week:
"No doubt, such an option will come at a price. A decision against 100% market pricing will cause a big market reaction and make headlines, though CB Intel suspects it will be short-lived as the focus will shift to the August meeting.
But there will be a lasting benefit too. The RBA will send a signal that it will not act simply to meet market expectations if its own forecasts and judgements do not back the decision."
LATEST SNIPPETS
RBA bond-buying announcement keenly awaited
Market looking forward to RBA's bond-buying announcement today for purchases under three-year yield target policy...
Published on : 22 Feb 2021 , 10:58 AMWestpac Evans sees Aussie 10-year yield at 1.9% end-2021
Westpac's chief economist Bill Evans has raised his forecast for US 10-year bond yield to 1.8% from 1.5% by the e...
Published on : 19 Feb 2021 , 04:28 PMAustralia jobless rate drops to 6.4%; hours worked falls sharply due to leave
Australia's unemployment rate fell to 6.4% in January from 6.6% as the number of employed rose 29,100 while the n...
Published on : 18 Feb 2021 , 12:08 PMANZ analysts see NZ in leading position to normalize monpol
Forex analysts at ANZ have created an interesting pressure gauge to measure and rank the distance that each G10 econo...
Published on : 17 Feb 2021 , 11:35 AMKey headlines from RBA statement Tuesday
From the RBA's February Monetary Policy Decision statement:
--QE extension of A$100 billion after current...
AOFM updates issuance guidance for rest of the year
Following the release of MYEFO on Thursday, the Australian Office of Financial Management has updated issuance plans...
Published on : 18 Dec 2020 , 09:06 AMFinally the MYEFO date...
After a few phone calls, I finally managed to get confirmation that MYEFO will be published on Thursday. Even the Tre...
Published on : 14 Dec 2020 , 10:45 AMHeadlines from RBA Debelle's speech Tuesday
Headline from RBA Deputy Governor Guy Debelle’s speech Tuesday:
--RBA CAREFULLY MONITORING IMPACT OF...
Published on : 24 Nov 2020 , 01:30 PMRBA not buying bonds under yield target; A$2B under QE
The RBA will buy A$2.0 billion of November 2024 to May 2028 AGS under the A$100 billion QE program today.
T...
Published on : 19 Nov 2020 , 11:23 AMRBA buying longer-term Semis today
The RBA is buying A$1.0 billion of Semis with maturities in the July 2028 to May 2032 range. This is part of its purc...
Published on : 18 Nov 2020 , 11:30 AM