RBA interest rates: Reserve Bank of Australia leaves cash rate on hold at 3.85% | Reserve Bank of Australia

A divided Australian reserve bank had a surprise decision that rejected more mortgage assistance for millions of households.

The divided decision came to the financial markets as a shock and the majority of experts who are sure that the RBA board of directors would reduce interest rates for a second meeting.

At the beginning of the year, weak growth, inflation alleviate and Donald Trump’s impact of trade war on the global economy, serious concerns about the third ratio of 2025 as the reasons.

The RBA Board was divided, six votes, and in waiting for the rates, and against three, the last consensus decisions.

RBA Governor Michele Bullock said that in a media briefing after the decision, the board was united on the direction of interest rates, not in the timing of deductions.

Bullock said that they were willing to see that the interest rates of the mortgage households have fallen.

“I am also aware that we do not have to fight inflation again. We want to make sure we are nailed,” he said.

Bullock said the Board would wait to see if the Board would show another decline before deciding on a possible proportion of the three -month inflation data that should be released at the end of July.

RBA’s fee decision statement shows that there is a division in the vote on Tuesday, while the records do not show how Bullock or another member voted.

The decision to hold will give RBA more time for more time for the spreading of Donald Trump’s tariff regime and changing timeline.

Bullock said that some global trade risks have been reduced since RBA’s last meeting.

“But this is a very fluent situation and we will continue to follow the data here and abroad to see how things are played,” he said.

Immediately after the decision, the Australian dollar rose from US65.15C to 65.5 US cents before the announcement.

Treasurer Jim Chalmers said that this is not the result of millions of Australians. ”

“We have made significant and continuous progress in inflation, so interest rates have been cut twice in five months this year,” Chalmers said.

“We saw that they did not always cut at each meeting when the central banks reduced rates.”

Betashares Chief economist David Bassesese was one of a small RBA observer waiting for the Central Bank to keep the rates on waiting.

After the decision, the expected ratio deduction was not “postponed”.

Bassesese, “In this sense, this undesirable ratio deduction has not been delayed – there are only a few weeks to wait for millions of Australia mortgage holders to relieve.”

Falling borrowing costs have added “Gusto ve to the real estate market in recent months and the highest levels in Sydney, Brisbane, Adelaide, Perth and Darwin. There was also a improvement in Melbourne and Hobart.

RBA’s Rate Determination Board will announce its next decision on August 12th.