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Chalmers releases RBA statement on conduct of monetary policy
ByAinvest
Wednesday, Jul 9, 2025 10:04 pm ET1min read
Chalmers releases RBA statement on conduct of monetary policy
Treasury Secretary Jim Chalmers has released a statement on the Reserve Bank of Australia's (RBA) conduct of monetary policy, following the recent meeting where the central bank held its Official Cash Rate (OCR) steady at 3.85% [3]. The decision surprised market expectations, which had anticipated a 25 basis points (bps) cut to 3.6%.Chalmers' statement emphasized the RBA's commitment to maintaining monetary stability while monitoring the evolving economic conditions. The RBA board members decided to leave the OCR unchanged, citing uncertainty in the outlook and the need to be attentive to incoming data [3].
The decision to hold rates steady comes amidst a backdrop of high inflation and rising costs of living. Opposition Leader Sussan Ley had urged banks to pass on the expected rate cuts in full to provide relief to homeowners [2]. However, the RBA's decision to maintain rates may limit the immediate impact on mortgage costs.
The RBA's monetary policy statement highlighted that the board will continue to assess the risks and data to guide its future decisions. This approach underscores the central bank's cautious approach to monetary policy, aiming to balance economic growth and price stability.
Meanwhile, the Australian Dollar (AUD) gained strength against the Japanese Yen (JPY) after the RBA decision, reaching near 95.50 in the Asian session [3]. The AUD/JPY cross attracted buyers due to the unchanged OCR, which was seen as a positive signal for the Australian economy.
As the RBA continues to monitor economic data and risks, investors and financial professionals are keeping a close eye on the central bank's future policy decisions. The next rate decision is expected to be closely watched, with the possibility of further rate cuts later in the year to boost consumer confidence [2].
References:
[1] https://www.afr.com/policy/economy/which-rba-board-members-voted-for-a-rate-cut-20250709-p5mdlc
[2] https://www.news.com.au/finance/economy/interest-rates/sussan-leys-plea-to-banks-ahead-of-tipped-rba-rate-cut/news-story/7fe81baeeffc654c749c47257a420dbf
[3] https://www.mitrade.com/insights/forex-analysis/jpy/fxstreet-AUDJPY-202507081338
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