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 may buy 3-year government bonds again
Three-year yield on Australian government bonds are currently above the 0.10% target, raising speculation on whether...
Published on : 12 Nov 2020 , 10:51 AMHeadlines from the RBNZ’s November MPS on FLP:
Headlines from the RBNZ’s November MPS on FLP:
-Plan to implement Funding for Lending Programme in ea...
Published on : 11 Nov 2020 , 12:09 PMRBA buying semis in March 2025 to May 2028 maturity
The RBA is buying A$1.0 billion semis today under the A$100 billion bond-buying program.
The purchase...
Published on : 11 Nov 2020 , 11:32 AMResults of RBA's Bond-buying Auction Monday
Results of the RBA's bond-buying auction Monday, consisting of A$1.5 billion under 3-year yield target and A$2.0...
Published on : 09 Nov 2020 , 03:54 PMRBA buying total A$3.5B under 3-yr target, QE
The RBA is buying A$3.5 billion of government bonds today, with A$1.5 billion as part of its 3-year yield target, and...
Published on : 09 Nov 2020 , 11:33 AMHeadline from RBA Nov Statement on MonPol
RBA Not Contemplating Further Reduction In Interest Rates
RBA: Focus Will Be QE Program, Prepared To Buy More...
RBA buying A$2B of Nov 2028-May 2032 at 1st QE
The RBA is buying A$2 billion of November 2028 to May 2032 government bonds (excluding December 2030 bonds) as p...
Published on : 05 Nov 2020 , 11:21 AMRBA re-opening media lockups?
It appears the RBA's media lock-ups will restart from Friday when the Statement on Monetary Policy will be publis...
Published on : 04 Nov 2020 , 04:16 PMHeadlines from RBA Lowe's Speech Tuesday
RBA Lowe: No Change in View Little To Be Gained from Negative Policy Rate
RBA Lowe: Negative Policy Rate Extra...
More Headlines from RBA Policy
Any bond-buying to support 3-yr target would be in addition to A$100B QE
Not expecting to raise cash rate f...
Published on : 03 Nov 2020 , 02:35 PM