Politics Now Why the RBA held rates
Jul 8, 2025
Mortgage-borrowers are reeling from the RBA's unexpected decision to maintain the cash rate at 3.85%. The chat dives into the economic implications of this choice amid global instability. The hosts dissect the balance between inflation fears and growth sustainability. They also shed light on the RBA's newfound transparency in decision-making and its impact on public perception. Additionally, trade negotiations and the upcoming diplomatic visit to China add layers of complexity to Australia's political landscape.
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RBA's Cautious Rate Hold
- The RBA kept rates steady due to global uncertainty and a cautious approach.
- The inflation fight is largely won, but risks remain with a tight labor market and wage growth.
Transparency in RBA Voting
- Disclosure of the RBA board vote split reveals internal disagreement.
- Transparency about differing views may boost public confidence in decision-making.
Future Rate Cuts Possible
- The recent hold doesn't rule out future rate cuts.
- The RBA wants to proceed cautiously and wait for clearer economic data.