Financial News: RBA Board Says Another Rate Cut Inconsistent With

RBA Board Says Another Rate Cut Inconsistent With Cautious Stance, Minutes Show

07/22/2025 - 04:09:00 (RTTNews)

(RTTNews) - Reserve Bank of Australia's policymakers said cutting the interest rate for a third straight time within the gap of four meetings would be inconsistent with the cautious monetary policy stance, the minutes of the July monetary policy meeting showed Tuesday.

"Lowering the cash rate a third time within the space of four meetings would be unlikely to be consistent with the strategy of easing monetary policy in a cautious and gradual manner to achieve the Board's objective," the minutes said.

Majority of members said that it would be prudent to wait for confirmation that inflation would sustainably return to target as forecast before easing policy further.

The observed that the board will receive more information including quarterly inflation report, labor market data and how the global economy evolves before the next meeting.

Meanwhile, a minority of members argued for rate cut as they placed more weight on downside risks to the economic outlook.

Markets widely expected the RBA to cut the cash rate by a quarter-point on July 8. But with a majority of 8-3, the board voted to hold the rate at 3.85 percent. Further, members agreed to improve the effectiveness of the board's communication by disclosing an unattributed record of votes at the July meeting and future meetings.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Japan Producer Prices Rise 0.2% In July (39 min(s), 34 sec(s) ago)
(RTTNews) - Producer prices in Japan were up 0.2 percent on month in July, the Bank of Japan said ...Full Story»

Australia Wage Price Data Due On Wednesday (02 hr(s), 36 min(s), 34 sec(s) ago)
(RTTNews) - Australia will on Wednesday release Q2 data for its wage price index, highlighting a m ...Full Story»

U.S. Small Business Confidence Improves In July - NFIB (04 hr(s), 49 min(s), 34 sec(s) ago)
(RTTNews) - Small business optimism in the U.S. strengthened in July after eroding in the previous ...Full Story»

UK Labor Market Cools In Q2 (11 hr(s), 02 min(s), 34 sec(s) ago)
(RTTNews) - The U.K. labor market softened in the second quarter as wage growth eased, the unemplo ...Full Story»

U.S. Consumer Prices Increase 0.2% In July, In Line With Estimates (11 hr(s), 14 min(s), 34 sec(s) ago)
(RTTNews) - Consumer prices in the U.S. increased in line with economist estimates in the month of ...Full Story»

U.S. Consumer Prices Increase In Line With Estimates In July (11 hr(s), 58 min(s), 34 sec(s) ago)
(RTTNews) - Consumer prices in the U.S. increased in line with economist estimates in the month of ...Full Story»

German ZEW Economic Confidence Deteriorates On Trade Deal (12 hr(s), 33 min(s), 34 sec(s) ago)
(RTTNews) - Economic sentiment in Germany deteriorated sharply in August due to the disappointing ...Full Story»

Portugal Inflation Confirmed At 2.6% (13 hr(s), 11 min(s), 34 sec(s) ago)
(RTTNews) - Portugal's consumer price inflation increased slightly as initially estimated in J ...Full Story»