Division at the Reserve Bank of Australia as it keeps rates on hold

SBS Australia

11 hours ago

The Reserve Bank of Australia (RBA) board has kept rates on hold at 3.85 per cent. The RBA cut rates by 0.25 percentage points in both February and May, but left rates unchanged at its April meeting. The RBA had been widely expected to cut rates again after a decline in inflation and softer GDP growth, but the board were divided, with six in favour of keeping the rate on hold and three voting against it.
It said: "With the cash rate 50 basis points [0.5 per cent] lower than five months ago and wider economic conditions evolving broadly as expected, the board judged that it could wait for a little more information to confirm that inflation remains on track to reach 2.5 per cent on a sustainable basis."
The RBA has kept interest rates on hold. Source: SBS News The RBA board will next meet again in August. The RBA's decision to reduce the cash rate to 4.10 per cent back in February marked its first cut from a 13-year high of 4.35 per cent. The RBA had maintained the 4.35 per cent rate for around 15 months — from when it was introduced in November 2023 in response to rising inflation, throughout 2024, up until February 2025. — With additional reporting by the Australian Associated Press This is a developing story and this article will be updated.