RBA Holds Interest Rates at 3.85% — What’s Next for Borrowers? 🤔

In a surprise move, the Reserve Bank board has kept interest rates on hold at 3.85 per cent at its July meeting. The RBA's decision blindsided households, financial markets and most economists, who had expected an interest rate cut. The bank's governor hinted a cut at the central bank's next meeting in August if the ABS's upcoming quarterly inflation figures fall within its 2% to 3% target range. The central bank also revealed its unattributed voting split for the first time, with a minority (three out nine board members) voting for borrowing costs to be slashed. However, RBA governor Michele Bullock would not disclose which way she voted. While the RBA is staying on hold for now, there's a lot of economic uncertainty ahead. US President Donald Trump is ramping up trade tensions -- sending letters to countries across the world, dictating what level of tariffs their goods into America will face.
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