2026 MG 4 spied: Two-car strategy firming for small EV segment
Images taken by CarExpert reader Lindsay in Canberra show a camouflaged, right-hand drive version of the new MG 4 previewed in China in March.
'We have taken our evaluation of this new model to the next stage in our process. It is under serious consideration to join alongside our award winning MG4 range to best match technology to the evolving needs of Australian drivers and lifestyles,' said an MG Motor Australia spokesperson.
'The much loved current MG4 is not going anywhere. Further testing will be completed before a decision is reached around this new model in Australia.'
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While this new model has confusingly been revealed as the new MG 4 in China – where the existing MG 4 is no longer available – it's almost certain to wear a different nameplate here.
In late June, MG parent SAIC Motor applied to trademark the name MG 4 EV Urban with IP Australia.
MG said earlier this month that no decision had been made to use this name.
However, of the MG trademarks SAIC Motor has filed over the past five years, all bar one – the QS Plug-in Hybrid – has subsequently appeared on a vehicle in local showrooms.
The MG 4 will be officially launched in China on August 5, 2025.
MG previewed the new MG 4 in March as its first global vehicle of 2025, but didn't show off its interior until later.
Video clips and images published by MG on Chinese social media have shown off a minimalist interior in a shade of beige, featuring a large and free-standing, landscape-oriented touchscreen and digital instrument cluster.
A single row of buttons sits below the touchscreen, while in China at least it'll offer MG's new 'cockpit system', which was developed with smartphone brand Oppo but also supports Huawei and Apple devices, allowing voice-activated commands, gesture-based navigation and smartphone mirroring.
There's still much that is not known about the vehicle, though MG Motor Australia confirmed earlier this year that it is based on a different platform to the rear/all-wheel drive Modular Scalable Platform that underpins the existing MG 4 and new MG S5 EV small electric SUV.
A Chinese Ministry of Industry and Information Technology (MIIT) filing, shared by Car News China, revealed the new MG 4 measures 4395mm long, 1842mm wide and 1551mm tall on a 2750mm wheelbase.
That makes it 108mm longer, 6mm wider and up to 47mm taller than the current MG 4, on a 45mm longer wheelbase.
Technical specifications in the filing are reportedly limited, though a single electric powertrain comprising a 120kW electric motor is listed, along with a kerb weight of 1485kg.
The new hatch uses a 70kWh lithium iron phosphate (LFP) battery.
Despite featuring a front bumper and tail-lights inspired by the flagship Cyberster electric sports car, the new hatch is much more softly styled than the existing MG 4 that's no longer offered in China but remains popular in markets such as Australia and Europe.
The softer styling is complemented by new pastel green and purple exterior finishes, though MG has also shown off a bright red MG 4 on Weibo with black stripes.
The current MG 4 may not have been a hit in China, but in the first half of 2025 it was Australia's fifth best-selling EV.
MG delivered 2268 examples, making it more popular than the Dolphin (1337) despite a sales drop of 18.2 per cent from the same period last year.
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Perth Now
an hour ago
- Perth Now
2025 Kia EV5 Earth AWD review
The Kia EV5 has been something of a breakout success story for the Korean automaker Down Under, quickly becoming the brand's top-selling electric vehicle (EV) locally as well as one of this country's favourite EVs, period. 2025 Kia EV5 Earth AWD Credit: CarExpert After launching in October last year, the Chinese-built EV5's sales have steadily grown, to the point where in the first half of 2025 it was Australia's fourth best-selling EV behind the Tesla Model Y and Model 3, as well as the BYD Sealion 7. To the end of July, Kia is sitting at 3227 deliveries for the EV5, which isn't far off the much cheaper, petrol-powered K4 small sedan and Stonic light SUV in terms of outright volume, which is impressive. What makes it so popular? Well, the trusted Kia brand no doubt helps attract foot traffic through dealer doors, as does the fact the EV5 lines up nicely as a zero-emissions companion to the already-popular Sportage mid-size SUV. Further, it's fairly well priced – starting from $56,770 drive-away – and it offers heaps of space courtesy of its boxy body, plus it's covered by Kia's lengthy seven-year warranty, roadside assistance and capped-price servicing program. Indeed, many mid-size electric SUV buyers may view this Chinese-made Kia as a safer bet than a relatively unknown Chinese-branded newcomer… Watch: Paul's video review of the Kia EV5 Earth On test here we have the 2025 Kia EV5 Earth (AWD Long Range), the penultimate variant in a four-strong range that starts inthe high $50,000s and tops out in the mid-$70,000s. Apart from adding all-wheel drive, it ups the featureset and aesthetics over the entry-level Air, and you also get the option of an eye-catching Nougat Brown interior, as tested, which isn't available on any other variant in the range. Could this be the Goldilocks of Kia's mid-size electric SUV lineup? Or are you better off choosing either the cheaper grades or the pricier but fully decked-out GT-Line flagship? The Earth AWD on test here is the second most expensive variant in the Australian EV5 range, starting from $64,770 before on-road costs or $68,990 drive-away. 2025 Kia EV5 Earth AWD Credit: CarExpert To see how the Kia EV5 lines up against the competition, check out our comparison tool I have to give Kia props for keeping the production EV5 so close to the concept that previewed it. 2025 Kia EV5 Earth AWD Credit: CarExpert The EV5 continues Kia's pared back interior design that has been filtering out throughout its latest models, but the optional Nougat interior adds a pop of colour that's interesting while lightening up the cabin a bit. While it may not be to all tastes, it's far from boring and helps highlight the various design details throughout the cockpit, and also contrasts nicely with the grey accents on secondary surfaces. Up front you get Kia's ccNC (connected car Navigation Cockpit) display module, housing twin 12.3-inch displays for the driver's instrument cluster and infotainment touchscreen, and bookending a 5.0-inch digital climate control pod. It's become standard fare for all new Kias, and as we've experienced previously it's easy to use, quick to respond, and fully featured with Kia Connect services, as well as wireless smartphone mirroring, DAB+ digital radio and online navigation. 2025 Kia EV5 Earth AWD Credit: CarExpert 2025 Kia EV5 Earth AWD Credit: CarExpert 2025 Kia EV5 Earth AWD Credit: CarExpert 2025 Kia EV5 Earth AWD Credit: CarExpert The retro-futuristic graphics are a nice touch, though I'd like to see the option of dial-aping meters for the driver's display. If you find touch controls for the climate controls too fiddly, there are physical toggles on the dash too. Kia's connected services suite extends to app compatibility and remote functions that you can toggle via your smartphone, and there's also an intelligent voice assistant that can input destinations, check the weather, and the like. The open plan-style cabin layout brings a lounge-like airiness, but to some that could make the EV5 feel a little… sparse. The floating centre console doesn't have a wireless phone charger in this specification, so there's just a tray that sees your stuff sliding about all the time. The bench-style front seat has carried over from the concept, but in lieu of a sixth perch between the driver and front passenger, there's an odd pocket nook that can be used to hide a phone or wallet, but not much else. Big-ish bottle holders and shallow door pockets bolster the front glovebox and the space ahead of the floating console for something like a handbag, but other than the soft-touch dash and door inserts, and the capacitive-style shortcuts at the base of the touchscreen embedded into the dash fascia, it can come off quite minimalist and almost too bare. 2025 Kia EV5 Earth AWD Credit: CarExpert 2025 Kia EV5 Earth AWD Credit: CarExpert This is reflected in the rear as well, where the boxy body and high roofline make for an open and airy feel, but there's not a whole lot in the way of design flair. It's very functional, though. Space for six-footers is plentiful, and there are amenities like air vents mounted to the B-pillars, as well as USB-C charge ports on the front seat backs. There's a fold-down centre armrest with two cupholders too, making for a generally comfortable space that can easily accommodate multiple passengers on longer drives. Rear-seat occupants are able to make use of the sliding storage tray, which resides behind the centre console under the front middle 'seat'. Kiddies are catered for with ISOFIX and top-tether child seat mounts, as you'd expect. 2025 Kia EV5 Earth AWD Credit: CarExpert 2025 Kia EV5 Earth AWD Credit: CarExpert 2025 Kia EV5 Earth AWD Credit: CarExpert 2025 Kia EV5 Earth AWD Credit: CarExpert The Kia EV5's boot measures a claimed 513 litres with the rear seats in use, expanding to a massive 1714 litres with them folded – and they fold pretty much flat. An underfloor tray offers room to put cables or hide things out of sight. On either side of the boot are movable pegs, which can be used for hanging small bags and other cargo. Kia has also fitted six mounting locations for these pegs on either side for greater versatility. There's a 250V household-type power outlet in the cargo areas as well, which is the EV5's V2L (vehicle-to-load) socket that can be used to power or charge electrical appliances or devices in the rear of the cabin. You'll notice there's no spare wheel though – just a tyre repair kit, sadly. To see how the Kia EV5 lines up against the competition, check out our comparison tool The EV5 Earth is only offered locally with the flagship AWD Long Range drivetrain, which is shared with the GT-Line. 2025 Kia EV5 Earth AWD Credit: CarExpert The Earth's smaller wheel and tyre package means it delivers quicker acceleration and a longer range than the top-shelf GT-Line according to claimed performance and range metrics – ie: 6.1 seconds to 100km/h (versus 6.3s) and a claimed 500km of driving range (versus 470km). I think Kia Australia would be wise to offer the Earth-spec with the 2WD Long Range drivetrain, which sees driving range eclipse 500km and would likely bring down the asking price by a couple grand, too. It's also worth noting the EV5's lithium iron phosphate (LFP) batteries are supplied by Chinese giant BYD, at least for the China-sourced vehicles we get in Australia. Overseas markets like South Korea and Europe get a Korean-made EV5 which utilises nickel manganese cobalt (NMC) lithium-ion batteries with different capacities. To see how the Kia EV5 lines up against the competition, check out our comparison tool Kia Australia has subjected the EV5 to its extensive chassis localisation program, with the suspension and steering systems both tuned specifically for Australian roads and conditions, in addition to local ADAS tuning. 2025 Kia EV5 Earth AWD Credit: CarExpert This has been a key Kia selling point for years, and in the case of the EV5 it's up against numerous Chinese rivals which seem to receive common complaints around ride quality that's too soft and body control that's too flaccid. My daily drive between Melbourne's eastern suburbs and the Victorian CarExpert office in Docklands includes a multitude of road surfaces, posted speed limits and of course weather conditions; and in reality these are the kinds of scenarios most EV5 owners will drive in – unlike some launch programs that take us on flat, fast highways and tight and testing B-roads in the country. My colleague Max Davies was fairly complimentary of the EV5's on-road manners and dynamics at the local launch last year, so I was keen to see if Kia's first battery-powered medium SUV felt just like an electric Sportage. I didn't come away with that feeling, sorry to say. In town, the EV5's suspension communicates the lumps and bumps of inner city roads quite clearly, but the softness of the suspension also means it can send the body up and down in the process. Where a lot of Kia's locally tuned products – like the aforementioned Sportage – are usually able to settle after an initial impact like tram tracks, the EV5 felt like it needed one or two movements before settling. 2025 Kia EV5 Earth AWD Credit: CarExpert Not only does it feel a little loose, it's frankly somewhat annoying that you can spent a lot of time waiting for it to calm down. I'm not sure if the Earth's larger wheels (compared to the Air) play a role here, but the Earth just never really settled on roads arounds around the Melbourne CBD like I thought it should. The steering is quite light and pretty quick to respond, which also feels a little out of whack with the suspension tune. You're also perched quite high in the cabin – it feels like you're sitting on top of the car rather than in it – which exacerbates the issue. Perhaps I'm overly critical because I'm used to Kia normally getting the ride/handling balance just about perfect. And to be fair, the EV5 is far from the worst in its class in this respect. Many rivals either are too firm or too soft – this leans towards the latter. At least the steering feels more dialled in than some of the overly light and often inaccurate electrically assisted racks found in its rivals, particularly some of the cheaper Chinese alternatives. Once I hit the freeways and better surfaced roads of the suburbs, I was much more impressed. The EV5 Earth is very comfortable and settled at highway speeds, and does a good job at keeping ambient noise at bay despite the lack of powertrain noise. 2025 Kia EV5 Earth AWD Credit: CarExpert It also offers plenty of performance in this spec. 230kW and 480Nm is plenty for this class of car, and the immediacy of response from the dual-motor electric drivetrain makes quick overtakes a cinch. It's certainly peppier than any Sportage I've driven. Being all-wheel drive, you also won't light up the front tyres and test the traction control's friendship when you accelerate too hard off the line, which you can very easily do in FWD versions of the EV5. That said, the dual-motor version could be more efficient. After 760km we saw energy consumption of 22.3kWh/100km on the trip computer, which was admittedly skewed by the fact Paul Maric spent a lot of time driving it on the freeway between Geelong and Lang Lang – I regularly saw 17-19kWh/100km during my daily commute in mixed conditions. Still, when something like a Model Y can easily consume 13-14kWh/100km, it's like comparing a RAV4 Hybrid to a turbocharged Mazda CX-5 in terms of relative efficiency. At least the assistance systems work pretty well, which is another area where a lot of Chinese rivals fall flat. 2025 Kia EV5 Earth AWD Credit: CarExpert Kia's semi-autonomous Highway Driving Assist 2 uses navigation data in concert with the adaptive cruise and lane-keeping systems to take the load off freeway stints, keeping the vehicle at a set speed and distance from the vehicle ahead and in the centre of its lane. It works well and doesn't have the tendency to slam on the brakes when someone cuts you off. At times the lane centring assist (or Lane Follow Assist) can be a touch overbearing, but it's very easily switched off via a button on the steering wheel. Hyundai and Kia's audible speed warnings can get a little annoying too, though in the EV5 they're not as loud as they once were, and can be easily switched off by holding down the mute button. Annoyingly, the Earth grade misses out on surround cameras and Kia's funky Blind Spot View Monitor features, which are reserved for the flagship GT-Line – boo. To see how the Kia EV5 lines up against the competition, check out our comparison tool The Earth sits between the entry-level Air and the flagship GT-Line grades in the EV5 lineup. 2025 Kia EV5 Earth AWD Credit: CarExpert 2025 Kia EV5 Earth AWD Credit: CarExpert 2025 Kia EV5 Earth AWD Credit: CarExpert 2025 Kia EV5 Earth AWD Credit: CarExpert 2025 Kia EV5 Air equipment highlights: 18-inch alloy wheels 225/60 R18 tyres Tyre mobility kit Tyre pressure monitoring LED headlights – reflector type Automatic high-beam LED daytime running lights LED tail-lights Matte plastic roof racks Satin Silver window surrounds Acoustic windscreen Solar glass – windscreen, front door Solar glass – rear windows, tailgate Auto up/down windows – front Cloth, artificial leather trim 8-way power driver's seat incl. 4-way lumbar 4-way manual front passenger seat 3-cell massage function – driver 2nd row centre armrest Shift by Wire – column type Paddle shifters – brake regen control 2 x USB-C charge ports – front 2 x USB-C charge ports – rear LED interior lighting Integrated Panoramic Display Kia Connect Over the air (OTA) updates Satellite navigation incl. 10 years traffic info, updates Wireless Apple CarPlay Wireless Android Auto 6-speaker sound system AM/FM/DAB radio Dual-zone climate control Heated front seats 2nd row air vents – door pillar-mounted i-Pedal one-pedal driving function V2L interior socket 2025 Kia EV5 Earth AWD Credit: CarExpert 2025 Kia EV5 Earth AWD Credit: CarExpert EV5 Earth adds: 19-inch alloys 235/55 tyres Gloss black exterior accents Gloss black roof racks Gloss black window surrounds Powered child-proof rear door locks Artificial leather trim – Smoky Black or Nougat Beige Smart power tailgate Privacy glass – rear windows, tailgate V2L exterior socket EV5 GT-Line adds: Active Sound Design 20-inch alloy wheels 255/45 tyres Gloss black exterior mirrors Auto flush door-handles LED dynamic indicators Laminated glass – driver window GT-Line two-tone leatherette upholstery 4-way power front passenger seat incl. 4-way lumbar Premium Relaxation Seat – driver Driver seat memory function 6-cell massage function – driver 3-cell massage function – passenger Sports steering wheel Fingerprint authentication module Alloy sports pedals Auto up/down windows – front, rear Rear seatback table – passenger side Ambient mood lighting – 64 colours Wireless phone charger Heated, cooled rear sliding storage tray 8-speaker Harman Kardon premium sound system Augmented reality head-up display Heated second row outer seats Ventilated front seats To see how the Kia EV5 lines up against the competition, check out our comparison tool The Kia EV5 has a five-star ANCAP safety rating based on local testing conducted against 2024 criteria. This rating covers all variants sold in Australia and New Zealand. 2025 Kia EV5 Earth AWD Credit: CarExpert Standard safety kit includes: 7 airbags incl. front-centre Autonomous emergency braking Blind-spot assist Driver attention monitoring Highway Driving Assist 2 (HDA 2) Lane Following Assist (lane centring) Lane-keep assist Lead Vehicle Departure Alert Rear cross-traffic assist Rear occupant alert Reversing camera incl. dynamic guidelines Safe exit warning EV5 GT-Line adds: Blind Spot View Monitor Parking Collision Avoidance Assist – reverse, side, forward Surround cameras incl. 3D mode To see how the Kia EV5 lines up against the competition, check out our comparison tool The EV5 is covered by the same seven-year, unlimited-kilometre warranty as the wider Kia range. However, the high-voltage EV battery and related componentry is warranted for 150,000km. 2025 Kia EV5 Earth AWD Credit: CarExpert To see how the Kia EV5 lines up against the competition, check out our comparison tool The EV5 has quickly become a popular choice in the Australian EV space, and it's pretty easy to see why. 2025 Kia EV5 Earth AWD Credit: CarExpert Distinctive looks, a spacious interior, a well-known badge on the nose and a good suite of on-board tech make the EV5 a familiar experience for any existing Hyundai or Kia owner looking to move to zero tailpipe emissions transport. While the driving experience could be better, especially given the Korean brand's recent form, it's far from off the pace in this segment and there are many some strong points like effortless power, decent range and a well-tuned driver assistance suite. The Earth specification should, in theory, be the pick of the EV5 bunch, but Kia has made it quite expensive while also withholding key features like surround cameras, Blind Spot View Monitor, a wireless phone charger and the ventilated front seats from the flagship GT-Line – which is a whole $7000 pricier. 2025 Kia EV5 Earth AWD Credit: CarExpert At nearly $70,000 on the road, I think the Earth variant should be cheaper and some of those features should be standard, or at least available as an option pack. I'm also of the mindset that most EVs, and especially electric SUVs, don't need high-output dual-motor drivetrains. Yes, you get the peace of mind that AWD traction offers in wet conditions, but for the most part you're just sapping range and adding weight. I think the Earth spec with a single-motor drivetrain for around $65,000 drive-away would make a lot of sense for many more buyers. While the EV5 Earth is good for what it is, I'd suggest the best EV5 is the cheapest one. But if money is no object and you want everything this solid nameplate has to offer, the GT-Line range-topper is where it's at. 2025 Kia EV5 Earth AWD Credit: CarExpert CarExpert can save you thousands on a new Kia EV5. Click here to get a great deal. MORE: Explore the Kia EV5 showroom Practical, spacious cabin Familiar feel to layout and tech Achievable claimed driving range Wobbly urban ride Annoying equipment omissions Energy efficiency could be better Power: 230kW Fuel Type: Electric Economy: 0.0L/100km CO2 Emissions: 0g/km ANCAP Safety Rating: Untested
The Age
7 hours ago
- The Age
ASX higher on rate cut hopes; JB Hi-Fi falls
Financial stocks were stronger, with Westpac up 1.9 per cent, ANZ rising 1.2 per cent and NAB adding 0.9 per cent. Commonwealth Bank, which will deliver its results on Wednesday, was 01.1 per cent higher. Loading Energy stocks were mixed, with Woodside adding 0.7 per cent, Yancoal flat and Santos slipping 0.1 per cent. The laggards Consumer discretionary stocks were the worst performing segment, down 1.6 per cent after a strong performance last week as JB Hi-Fi slumped 8.4 per cent to $107.83 despite boosting sales and profits as long-serving CEO Terry Smart announced his departure. He will be replaced by chief operating officer Nick Wells. The leadership announcement was made on the same day its full-year results were released, revealing a 10 per cent rise in sales to $10.6 billion, and a 5.4 per cent growth in profits to $462.4 million for fiscal 2025. The company has announced a fully franked final dividend of 105¢ a share, bringing the total dividend to 275¢ a share. It has also declared a special dividend of 100¢ a share. Wesfarmers fell 1.8 per cent, Aristocrat Leisure was down 1.1 per cent and Harvey Norman slipped 2.5 per cent. Australia's tech sector was underperforming the market, down 0.4 per cent as TechnologyOne sank almost 2.9 per cent to $39.18 and Xero lost 3 per cent. Gold miners took a breather as the precious metal eased around 1.5 per cent to $US3437.1 ($5269) an ounce. The lowdown The Australian sharemarket has made a bright start to the week ahead of Tuesday's Reserve Bank decision, with financial markets expecting the central bank to deliver the third cut in official interest rates this year. The top 200 briefly hit 8852.3, topping last week's intraday record of 8848.8 amid high expectations of a cut, Moomoo market strategist Michael McCarthy said. 'What many analysts seem to overlook is that just because the RBA [Reserve Bank of Australia] can cut doesn't mean it will cut,' he said. 'While core inflation at 2.7 per cent gives the RBA room to move, an unemployment rate of 4.3 per cent means it's not under any pressure to do so.' A refusal to cut on Tuesday could have a significant impact on the share market, McCarthy said. 'We expect the RBA to cut the cash rate by 25 basis points next week to 3.6 per cent... The overall tone of the statement will likely be neutral with a dovish lean,' Citi analysts wrote in a note. All eyes will be on Tuesday's decision as earnings season is hitting its stride, with CBA, Seven West, AGL, IAG, Suncorp, Telstra, Cochlear and Origin among companies reporting this week. Meanwhile, options traders are using currencies such as the Australian dollar and euro to express bearish US dollar views after recent disappointing American economic data. The Aussie is being supported by the Reserve Bank's 'cautious and gradual' stance on easing, as well as improving risk sentiment. The euro's allure has grown from expectations an increase in regional defence spending will support the euro-zone economy, and a more hawkish-sounding European Central Bank. Meanwhile, things look rockier for the US dollar as data showed jobs growth missed expectations in July with downward revisions to prior months as well. Standard Chartered Bank has seen 'a lot of interest' in euro-US dollar and Australian dollar-US dollar call options after non-farm payrolls, according to Saurabh Tandon, global head of foreign-exchange options in Singapore. The market is focusing on upcoming events such as US inflation and the Federal Reserve's Jackson Hole symposium, he said. National Australia Bank has seen a pick-up in demand for bullish Australian dollar option wagers, as well as for those on the New Zealand dollar. 'Following the recent non-farm payrolls, we've observed significant activity in AUD/USD and NZD/USD short-dated call options, in anticipation of a busy data week, including the US CPI release and the RBA meeting.' said Con Davelis, Sydney-based head of FX options at the bank. On Friday, the S&P 500 rose 0.8 per cent, finishing just shy of the record it set last week. The benchmark index also wiped out its losses from a slide last week. The Dow Jones rose 0.5 per cent and the Nasdaq composite added 1 per cent to the all-time high it had set a day earlier. Technology companies, with their hefty stock values, did much of the heavy lifting for Wall Street. Nvidia rose 1.1 per cent and Apple gained 4.2 per cent. Gilead Sciences jumped 8.3 per cent for one of the market's biggest gains. It reported financial results that easily beat analysts' forecasts, while also raising its earnings forecast for the year. Expedia Group rose 4.1 per cent after also reporting encouraging financial results. Loading They are among the final big batch of companies within the S&P 500 to report mostly strong financial results for the second quarter. Still, many have warned that current tariffs could cut into their profits. Financial sector stocks also helped drive the market higher. Bank of America gained 2.4 per cent and Mastercard rose 2.3 per cent. Elsewhere in the market, entertainment giant Paramount Skydance slid 10.5 per cent a day after the company was created by the closing of an $US8 billion ($12.3 billion) merger of Skydance and Paramount. Shares in rival Warner Bros. Discovery sank 8 per cent. The main focus throughout the week has been on President Donald Trump's trade war and its potential impact on the US economy, as well as the Federal Reserve's interest rate policy. Trump began imposing higher import taxes on dozens of countries on Thursday. Still, the market appeared to largely shrug off the latest tariff escalation. 'The S&P 500's rebound this week may highlight the extent to which the market is becoming numb to tariff headlines,' said Daniel Skelly, head of Morgan Stanley's wealth management market research and strategy team. The unknown path of the economy amid an unpredictable tariff policy has been the key reason for the Fed to hold its benchmark interest rate steady. Loading Fed chair Jerome Powell, though, has been under increasing pressure from Trump to cut interest rates. Policy decisions aren't made solely by the Fed chair. All 12 members of the Federal Open Market Committee vote on interest rate changes. Trump has an opportunity to exert more control over the Fed following his nomination of Stephen Miran to a vacancy on the Fed's board of governors. Miran is a top economic adviser to Trump and is a near-certain vote in support of lower interest rates. The Fed's last decision to hold interest rates steady included two votes to lower interest rates. Its next meeting is in September, and Wall Street is overwhelmingly betting that the central bank will cut interest rates by a quarter of a percentage point. Wall Street and the Fed will get more insight next week on inflation's temperature and the economy. The government will publish updates on inflation at both the consumer and wholesale levels, along with a report on retail sales.
7NEWS
7 hours ago
- 7NEWS
Reserve Bank predicted to slash interest rates on Tuesday amid cooling inflation
Markets are almost certain the Reserve Bank of Australia will cut interest rates at its August meeting despite the board facing an increasingly uncertain environment. Benign quarterly inflation figures released by the Australian Bureau of Statistics in July should convince the board to cut the cash rate in a two-day meeting that started on Monday, AMP deputy chief economist Diana Mousina said. Know the news with the 7NEWS app: Download today In fact, a cut of 25 basis points to 3.6 per cent should have happened already, Mousina declared. Mortgage holders will be hoping lightning doesn't strike twice after the central bank's board voted in a 6-3 decision to leave rates on hold in July, despite markets pricing in a near-certain chance of a cut. The majority of economists also expect a cut this time around, including 31 out of 34 experts surveyed by comparison website Finder. But with markets predicting another two cuts following this one, RBA governor Michele Bullock is likely to try to pare back expectations in her post-meeting communications after the meeting wraps up on Tuesday. 'We think that the RBA will still sound cautious on giving too much forward guidance and remain of the view that interest rates do not need to be aggressively cut for now, given their concern that upside inflation risks may occur again in Australia,' Mousina said. Another potential concern for Bullock could be developments at the US central bank. Mousina said we could be seeing the 'Trumpification' of the Federal Reserve after the US president 's appointment of ally Stephen Miran to replace departing governor Adriana Kugler. Miran's appointment heralds a more dovish Fed board, which could mean lower US interest rates if Donald Trump gets his way. 'Stephen Miran's appointment to the Federal Reserve board will likely increase pressure for deeper rate cuts while broadening concerns around Fed independence,' JP Morgan chief economist Bruce Kasman said. While the RBA has been more focused on domestic developments in recent months, the Fed's outsized influence on global borrowing costs can set the tone for international monetary policy. When the Fed cuts, central banks around the world have tended to follow. And a dovish turn could have consequences for the Australian dollar, investor expectations and the broader economy.
