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08.07.2025 06:54:18

Australia Holds Key Interest Rate At 3.85%

(RTTNews) - The Reserve Bank of Australia maintained its benchmark rate on Tuesday, defying expectations for a quarter-point rate cut.

The policy board, governed by Michele Bullock, decided to maintain the cash rate target at 3.85 percent.

The current rate was the lowest in two years. Previously, the bank had reduced the rate by 25 basis points in May and February.

"With the cash rate 50 basis points 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 percent on a sustainable basis," the bank said in a statement.

The board noted that monetary policy is well placed to respond decisively to international developments if they were to have material implications for activity and inflation in Australia.

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GBP/AUD 2.0526 -0.0094
-0.46

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