The Daily Aus Headlines: Interest rates on hold in surprise RBA decision
Jul 8, 2025
The Reserve Bank of Australia surprised many by keeping the cash rate steady at 3.85%. Meanwhile, Texas grapples with heartbreak as flood fatalities exceed 100, including 28 children. In an unexpected twist, Israeli President Netanyahu nominated Donald Trump for a Nobel Peace Prize. On a brighter note, a small South American nation has achieved malaria-free status in the Amazon. This blend of serious and uplifting news captures the complexities of our world today.
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RBA Surprises Markets by Holding Interest Rates Steady
The Reserve Bank of Australia (RBA) has surprised many by keeping the cash rate unchanged at 3.85% instead of lowering it further as widely expected. The RBA emphasized it needs to "wait for a little more information to confirm that inflation remains on track to reach its target range of 2 to 3%".
This decision comes after two cuts earlier this year from 4.35%, reflecting caution amid elevated global economic uncertainty. The cash rate is key as it influences how much interest customers pay on loans such as mortgages.
Investors and homeowners will closely watch the next decision on August 12 to see how the RBA's outlook evolves.
RBA Interest Rate Hold Surprise
- The Reserve Bank of Australia kept the cash rate at 3.85%, surprising many economists.
- They are waiting for more data to ensure inflation goals between 2-3% are on track amidst global economic uncertainty.
Texas Flood Tragedy and Rescue
- Texas floods caused over 100 deaths, including 28 children, with many still missing.
- Rescue efforts saved at least 520 victims, with heavy damage to Camp Mystic impacting an all-girls holiday camp.