08.07.2025 06:51

Reserve Bank of Australia Governor Michele Bullock held a press conference today to explain the RBA's unexpected decision to maintain the cash interest rate at 3.85%. This follows the July policy meeting, a surprising move given market predictions. The press conference, part of the central bank's new reporting structure implemented this year, saw Bullock fielding questions from the media.

Bullock's explanation centered on the timing of CPI data, emphasizing that the decision wasn't about a shift in the overall direction of monetary policy. She highlighted that the RBA's easing path remains intact, but the timing of further rate cuts depends on the trajectory of inflation. While acknowledging internal board debate, she confirmed that disagreements focused solely on the optimal timing of adjustments, not the ultimate direction of rate changes. The governor's comments suggest that further rate reductions are anticipated if inflation continues to fall as projected. The current 3.85% rate follows a previous 50 basis point reduction, the effects of which are still unfolding.


The RBA's announcement contrasted sharply with market forecasts predicting a 25 basis point cut to 3.6%. This unexpected hold prompted considerable interest and speculation. The central bank's post-meeting statement included an unprecedented publication of an unattributed record of the board's votes, offering unprecedented transparency into the decision-making process. The statement also confirmed that inflation continues to ease.

Following the announcement, market reactions were closely monitored. Traditionally, hawkish RBA statements tend to strengthen the Australian dollar, while dovish statements have the opposite effect. This decision's impact on the currency remained a developing situation, with ongoing analysis required to assess the full consequences. Information from internet sources provided further context to this unfolding story.