BREAKING NEWS Major blow for millions of Aussies with a mortgage - as Reserve Bank boss makes a grim admission
The minutes of that July 8 meeting, released on Tuesday, have revealed the RBA's monetary policy board was worried about cutting rates again too soon, on the back of relief in February and May.
'They believed that lowering the cash rate a third time within the space of four meetings would be unlikely to be consistent with the strategy of easing monetary policy in a cautious and gradual manner to achieve the board's inflation and full employment objectives,' it said.
'While the flow of recent data had been broadly in line with earlier forecasts, they judged that some data had been slightly stronger than expected.'
The RBA this month kept rates on hold at 3.85 per cent, surprising economists at the Big Four banks and financial markets, which had regarded relief as a 97 per cent chance.
The experts had expected a July 8 cut after monthly headline inflation data for May showed the consumer price index falling to just 2.1 per cent, putting it on the low side of the Reserve Bank's two to three per cent target.
They had ruled out the RBA waiting until August 12 following the late July release of June quarter inflation data.
The Reserve Bank's July meeting minutes also expressed concern about headline inflation increasing from late 2025 following the expiry of $75 quarterly electricity rebates in December.
'Looking ahead, headline inflation was expected to pick up temporarily to around the top of the target range in late 2025 and remain there in 2026, reflecting the currently legislated unwinding of government energy subsidies to households,' it said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
28 minutes ago
- Reuters
Dollar eyes first monthly gain for the year as Fed in no hurry to ease rates
SINGAPORE, July 31 (Reuters) - The dollar flirted with a two-month peak on Thursday after Federal Reserve Chair Jerome Powell stuck to his patient approach on rates in a closely watched policy decision and offered little insight on when they could be lowered. The greenback was also on track for its first monthly gain for the year, bolstered by a hawkish Fed and U.S. economic resilience, with uncertainty over tariffs beginning to ease given recent trade deals struck by Washington. Against a basket of currencies, the dollar was last steady at 99.77 , not far from a two-month peak of 99.987 it hit in the previous session. The dollar index was set for a monthly gain of more than 3%. U.S. President Donald Trump's chaotic tariffs and fears of the dollar's demise earlier this year had undermined the currency and given it the worst start to the year since the floating exchange rate period. Those worries have since abated, giving the dollar new life. The latest push higher for the currency came on the back of the Fed's policy decision on Wednesday, after Powell reiterated it was still premature to ease rates. "We've seen the classic correlation still holding, in the sense that we've seen a hawkish Fed push up front-end yields and the U.S. dollar, equities have struggled, and the credibility of the Fed has also been probably reinforced by the view that the Fed chair is still in command," said Rodrigo Catril, senior currency strategist at National Australia Bank. "The dollar is not just consolidating, but it's actually getting a little bit of upward momentum ... The broader picture as well is that all these tariffs, there's at least an initial impression that the U.S. is the one that's got the upper hand." The euro was last 0.25% higher at $1.1433, having slid to a seven-week low in the previous session. It was on track to lose 3% for the month. Sterling languished near a 2-1/2-month low and last bought at $1.3248. It was similarly headed for a 3.5% monthly decline. Traders have scaled back expectations for Fed cuts this year following Powell's comments, now pricing in about 35 basis points of easing by December. Markets have also been faced with a blitz of tariff announcements ahead of an August 1 deadline for countries to secure trade deals or face steep levies. South Korea became one of the latest nations to reach an agreement with the U.S., after Trump on Wednesday said Washington will charge a 15% tariff on imports from the key Asian ally. The South Korean won strengthened on the news, rising 0.3% to 1,389.20 per dollar. Trump on Wednesday also slapped a 50% tariff on most Brazilian goods and said the United States is still negotiating with India on trade. Key for investors in Asia on Thursday will be the Bank of Japan's policy decision, where expectations are for the central bank to stand pat on rates. Focus will be on whether Governor Kazuo Ueda offers any hints of another rate hike this year, as the BOJ weighs lingering tariff-induced risks to growth and mounting inflationary pressure from higher food costs. The yen wobbled near a four-month low at 149.29 ahead of the decision, headed for a monthly loss of 3.5%. "In the near term, the balance of risk is gradually shifting toward a more hawkish path - especially if inflation expectations begin to firm or household demand improves meaningfully," said Howe Chung Wan, head of Asian fixed income at Principal Asset Management. "But for now, the central bank's stance remains one of seeking more flexibility, prioritising stability over any premature tightening." In other currencies, the Australian dollar edged up 0.13% to $0.6443 after sliding more than 1% on Wednesday. It was headed for a monthly drop of 2%. The New Zealand dollar rose 0.2% to $0.5906, having also lost more than 1% overnight. It was set to lose roughly 3% for the month.
The Independent
an hour ago
- The Independent
First Australian-made rocket crashes after 14 seconds of flight in a failed attempt to reach orbit
The first Australian -made rocket to attempt to reach orbit from the country's soil crashed after 14 seconds of flight on Wednesday. The rocket Eris, launched by Gilmour Space Technologies, was the first Australian-designed and manufactured orbital launch vehicle to lift off from the country and was designed to carry small satellites to orbit. It launched Wednesday morning local time in a test flight from a spaceport near the small town of Bowen in the north of Queensland state. In videos published by Australian news outlets, the 23-meter (75-foot) rocket appeared to clear the launch tower and hovered in the air before falling out of sight. Plumes of smoke were seen rising above the site. No injuries were reported. The company hailed the launch as a success in a statement posted to Facebook. A spokesperson said all four hybrid-propelled engines ignited and the maiden flight included 23 seconds of engine burn time and 14 seconds of flight. Gilmour Space Technologies had planned previous launches of the rocket, in May and earlier this month, but called off those operations because of technical issues and bad weather. CEO Adam Gilmour said in a statement he was pleased the rocket got off the launchpad. 'Of course I would have liked more flight time but happy with this,' he wrote on LinkedIn. Gilmour said in February that it was 'almost unheard of' for a private rocket company to successfully launch to orbit on its first attempt. The firm had earlier said it would consider the launch a success if the rocket left the ground. The launch site infrastructure 'remained intact,' the statement said. Mayor Ry Collins of the local Whitsunday Regional Council said the completed launch was a 'huge achievement' even though the vehicle didn't reach orbit. 'This is an important first step towards the giant leap of a future commercial space industry right here in our region,' he wrote on Facebook. Gilmour Space Technologies has private funders and was awarded a 5 million Australian dollar ($3.2 million) grant this month from the country's federal government for the development of the Eris rocket. It followed the firm's AU$52 million grant agreement with the government in 2023 to advance the development and commercialization of new space technologies in Australia. The country has been the site of hundreds of suborbital vehicle launches but there have only been two successful launches to orbit from Australia before, according to the aerospace news platform NASASpaceFlight. The maiden Eris test flight was the first orbital launch attempt from Australia in more than 50 years.
Daily Mail
an hour ago
- Daily Mail
NRL player Tye Alroe dies in gym tragedy aged just 39 after forging a storied career in the property industry
A player once contracted with the Melbourne Storm has died after suffering a heart attack at a Gold Coast gym on Tuesday. Tye Alroe was just 39 and leaves behind his partner Nikki and young daughter Poppy. He collapsed after feeling unwell and was unable to be revived by emergency services. Labelled an 'exceptional businessman and even better bloke' by close friend Steve Hunt, Alroe was also a highly respected figure in the Gold Coast property development industry. 'He was a rising star and well liked by all, including builders, tradespeople and contractors,' Hunt told News Corp. 'The industry is devastated by the untimely passing of such a go-getter.' Alroe was signed to the Melbourne Storm aged 19, but never progressed to NRL level. He soon turned his attention to construction, where Alroe first worked as a carpenter and bricklayer. He founded his Alroe Construction business in 2012 and earlier this year was described as 'one of the Gold Coast's leading boutique developers' with a 'turnover of $50million and a workbook of $185million'. Following news of his death, many of his family, friends and colleagues paid their respects on social media. Alroe's sister Courtney posted on Instagram the 'world has lost one of its most beautiful souls.' 'Words cannot express the pain and heartbreak we are feeling as a family,' her lengthy post began. 'Tye was truly one of the kindest humans you could ever meet. No matter what he was going through, his number one priority was always everyone else. He was strong, smart and so incredibly funny. 'The world feels a lot darker and so much sadder without him in it. 'For me, he was my everything. I'm feeling a pain I never thought I could survive, but in his name and for his legacy, we will continue to be there for him, his company, his people, his friends, his family and most importantly his darling Poppy and Nikki. 'Tye, you will forever be 39. Your smile, your light, your love and your spirit will live on in all of us who were blessed to know you. We will miss you every single day. My heart will never be the same. 'Forever loved. Forever missed. Forever my guardian angel.'
