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RBA Holds Rates Steady Amid Expected Federal Cuts

7/12/2025

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Summary

Story summary

The Reserve Bank of Australia (RBA) maintained the cash rate at 3.85%, surprising market expectations for a cut.
Government reforms aim to boost the RBA's independence and transparency after a recent review.
Smaller lenders are lowering mortgage rates despite the RBA's decision.
The AUD/USD exchange rate remains stable, shaped by RBA and Federal Reserve policies.
Analysts foresee possible Federal Reserve rate cuts in September, which could affect the Australian Dollar.

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Story summary

The Reserve Bank of Australia (RBA) maintained the cash rate at 3.85%, surprising market expectations for a cut.
Government reforms aim to boost the RBA's independence and transparency after a recent review.
Smaller lenders are lowering mortgage rates despite the RBA's decision.
The AUD/USD exchange rate remains stable, shaped by RBA and Federal Reserve policies.
Analysts foresee possible Federal Reserve rate cuts in September, which could affect the Australian Dollar.