The Fin The rates call that stunned economists, markets and... our reporters
9 snips
Jul 16, 2025 John Kehoe, the Economics editor at The Australian Financial Review, and Jonathan Shapiro, a senior reporter at the same outlet, dive into the Reserve Bank of Australia's unexpected decision to keep interest rates steady. They discuss how this surprising move reflects deeper economic issues, particularly for Gen Z facing stagnant productivity and high debt. The duo also unpacks the implications of recent global events on local policies and market reactions, shedding light on the precarious financial landscape for future generations.
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RBA Shock Hold Anecdote
- Economists were confident of a rate cut but were shocked when the RBA held rates at 3.85%.
- Reporters rushed to rewrite their stories and questioned Governor Michelle Bullock amidst the unexpected hold.
RBA Inflation Data Caution
- The RBA distrusts volatile monthly inflation numbers, preferring quarterly data for decisions.
- Inflation appears artificially low now due to temporary government subsidies, especially in energy.
RBA Vote Transparency
- The RBA board's vote was historically disclosed, revealing a 6-3 split to hold rates.
- This new transparency signals more unpredictable and genuine discussions behind rate decisions.