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Economic Buzz: RBA keeps rate at 3.85% amid cautious inflation outlook
08-Jul-2025 10:46
The Reserve Bank of Australia held its cash rate steady at 3.85% during its July meeting, defying market expectations of a 25 basis point cut. The decision, passed by a majority vote, reflects the central bank's view that inflation risks have become more balanced and the labour market remains strong. However, the RBA remains cautious amid ongoing uncertainties around aggregate demand and supply. Policymakers said they would wait for more data to confirm inflation is on track to return sustainably to the 2.5% target. The central bank also reiterated its readiness to act if global developments significantly impact domestic inflation or economic activity.

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