Reserve Bank meets with rates tipped to stay on hold
The majority of economists recommend that interest rates remain constant while the Central Bank begins negotiations.
The bank’s board of directors will begin two days of talks on Monday to determine whether the official cash rate will remain constant at 4.35 percent.
Federal Reserve governor Michelle Bullock will announce the board’s decision Tuesday afternoon.
This amount is seen as likely to be kept constant, despite persistent economic pressures from the conflict in the Middle East and inflation levels above the bank’s preferred target range.
A Reuters survey of 45 economists revealed that 42 economists expect the bank to keep interest rates unchanged.
If the predictions come true, the bank’s board of directors will not increase interest rates for the first time in 2026, after three consecutive increases in the first half of the year.
NAB economist Josh Copeland said the central bank’s next rate change would likely be a cut.
“Inflation risks remain high and the RBA is unlikely to provide guidance against further tightening on Tuesday, but we expect the RBA’s next move is likely to be downside given restrictive policy and slow growth momentum,” he said.
More than half of economists surveyed by Reuters expect the interest rate to remain at 4.35 percent at the end of September.
More than 200 small businesses have applied for zero-interest loans from the federal government as part of economic measures designed to keep supply chains running amid the crisis in the Middle East, figures reveal.
Within the scope of a $1 billion program, approximately $195 million in loans were distributed to businesses engaged in fuel supply and transportation as of the beginning of June.
More than 75 percent of the loans were under $1 million.
Industry Minister Tim Ayres said the program was helping businesses weather economic shocks linked to the US-Israeli war against Iran.
“Firms in key sectors such as transport and logistics, fuel, plastics and fertilizers are receiving vital support from the National Reconstruction Fund in partnership with Australian banks,” he said.
“This is the job of the Albanian government to keep trucks moving, fuel flowing and supply and logistics firms operating when Australia needs them most.”
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