US Edition
RBA Shocks The Market As Lingering Inflation Blocks A Rate Cut
AUSTRALIA, JUL 13 – The Reserve Bank's rate hold came despite inflation hitting a multi-year low and caused market uncertainty, with six board members supporting the delay, three opposing, officials said.
- The Reserve Bank of Australia held the official interest rate at 3.85% last week, surprising markets expecting a 25 basis-point cut.
- The decision followed cautious inflation data for May at 2.4%, with the Board voting six to three to delay the cut while awaiting confirmation of inflation’s sustainable progress.
- The RBA introduced transparency reforms including unattributed vote recordings for the Governance Board and released the first Statement of Expectations to clarify oversight and accountability.
- Market reaction showed the Australian dollar rallying 2% against the Japanese yen and 1% versus the New Zealand dollar, while consumer sentiment improved only marginally, remaining cautiously pessimistic.
- These events reflect the Albanese Government’s effort to modernize the RBA’s governance framework to maintain its independence and credibility amid uncertain inflation trends.
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16 Articles
16 Articles
RBA Shocks The Market As Lingering Inflation Blocks A Rate Cut
·New York, United States
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Construction costs are rising at an accelerating pace in Australia, threatening to push up inflation and make housing construction targets harder to achieve.
Coverage Details
Total News Sources16
Leaning Left3Leaning Right1Center3Last UpdatedBias Distribution43% Left, 43% Center
Bias Distribution
- 43% of the sources lean Left, 43% of the sources are Center
43% Center
L 43%
C 43%
14%
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