
Reserve Bank minutes in focus after shock rate decision
Australia's central bank shocked markets and disappointed borrowers earlier in July when it opted to keep the cash rate on hold at 3.85 per cent, defying expectations of a 25 basis point cut.
The RBA will on Tuesday release the minutes of its last board meeting, potentially offering a glimpse of what lies ahead for its next decision on August 12.
Weaker-than-expected jobs data has narrowed expectations of an interest rate cut next month, after unemployment rose from 4.1 per cent to 4.3 per cent in June, despite economists' expectations of a steady print.
The employment figures were released on Thursday and could render the minutes slightly outdated, and a greater focus will be on RBA governor Michele Bullock's speech at Sydney's Anika Foundation on Thursday.
Interest rate markets have almost fully priced-in a 25 basis point cut to the official cash rate at the August meeting, and project the rate will fall to 3.2 per cent by the end of the year.
Each 25 basis point cut to the cash rate would shave roughly $90 off monthly repayments on a $600,000 mortgage.
In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows.
The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones.
While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said.
"Australia's infrastructure boom isn't over," he said.
"But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth."
The Reserve Bank is set to reveal why it resisted an interest rate cut, despite signs of easing inflation and sluggish economic growth.
Australia's central bank shocked markets and disappointed borrowers earlier in July when it opted to keep the cash rate on hold at 3.85 per cent, defying expectations of a 25 basis point cut.
The RBA will on Tuesday release the minutes of its last board meeting, potentially offering a glimpse of what lies ahead for its next decision on August 12.
Weaker-than-expected jobs data has narrowed expectations of an interest rate cut next month, after unemployment rose from 4.1 per cent to 4.3 per cent in June, despite economists' expectations of a steady print.
The employment figures were released on Thursday and could render the minutes slightly outdated, and a greater focus will be on RBA governor Michele Bullock's speech at Sydney's Anika Foundation on Thursday.
Interest rate markets have almost fully priced-in a 25 basis point cut to the official cash rate at the August meeting, and project the rate will fall to 3.2 per cent by the end of the year.
Each 25 basis point cut to the cash rate would shave roughly $90 off monthly repayments on a $600,000 mortgage.
In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows.
The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones.
While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said.
"Australia's infrastructure boom isn't over," he said.
"But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth."
The Reserve Bank is set to reveal why it resisted an interest rate cut, despite signs of easing inflation and sluggish economic growth.
Australia's central bank shocked markets and disappointed borrowers earlier in July when it opted to keep the cash rate on hold at 3.85 per cent, defying expectations of a 25 basis point cut.
The RBA will on Tuesday release the minutes of its last board meeting, potentially offering a glimpse of what lies ahead for its next decision on August 12.
Weaker-than-expected jobs data has narrowed expectations of an interest rate cut next month, after unemployment rose from 4.1 per cent to 4.3 per cent in June, despite economists' expectations of a steady print.
The employment figures were released on Thursday and could render the minutes slightly outdated, and a greater focus will be on RBA governor Michele Bullock's speech at Sydney's Anika Foundation on Thursday.
Interest rate markets have almost fully priced-in a 25 basis point cut to the official cash rate at the August meeting, and project the rate will fall to 3.2 per cent by the end of the year.
Each 25 basis point cut to the cash rate would shave roughly $90 off monthly repayments on a $600,000 mortgage.
In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows.
The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones.
While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said.
"Australia's infrastructure boom isn't over," he said.
"But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth."
The Reserve Bank is set to reveal why it resisted an interest rate cut, despite signs of easing inflation and sluggish economic growth.
Australia's central bank shocked markets and disappointed borrowers earlier in July when it opted to keep the cash rate on hold at 3.85 per cent, defying expectations of a 25 basis point cut.
The RBA will on Tuesday release the minutes of its last board meeting, potentially offering a glimpse of what lies ahead for its next decision on August 12.
Weaker-than-expected jobs data has narrowed expectations of an interest rate cut next month, after unemployment rose from 4.1 per cent to 4.3 per cent in June, despite economists' expectations of a steady print.
The employment figures were released on Thursday and could render the minutes slightly outdated, and a greater focus will be on RBA governor Michele Bullock's speech at Sydney's Anika Foundation on Thursday.
Interest rate markets have almost fully priced-in a 25 basis point cut to the official cash rate at the August meeting, and project the rate will fall to 3.2 per cent by the end of the year.
Each 25 basis point cut to the cash rate would shave roughly $90 off monthly repayments on a $600,000 mortgage.
In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows.
The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones.
While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said.
"Australia's infrastructure boom isn't over," he said.
"But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth."
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Canberra Times
21 minutes ago
- Canberra Times
Ex-PM Morrison urges strong US alliances over China
He shared with the House Select Committee on China his experience of coping with the country's trade punishments - including restrictions on imports of Australian wine, barley and more - when his government called for an independent inquiry into the origin of COVID-19.

AU Financial Review
an hour ago
- AU Financial Review
ASX to rise, Wall St gains on EU-US trade hopes
Australian shares are set to edge higher, with futures reversing early losses after reports that the EU and US are nearing a trade deal with 15 per cent tariffs as a key component. That tariff level would match one President Donald Trump said the US had reached with Japan the previous evening. The Dow paced gains higher in New York. The S&P 500 and Nasdaq also advanced though investors are waiting for results from Alphabet and Tesla after the closing bell at 6am AEST Thursday. Market highlights ASX futures are pointing up 5 points or 0.1 per cent to 8703. All US prices as of 2.30pm New York time. Today's agenda Among corporate reports expected on Thursday: Fortescue, Coronado Global Resources, Insignia Financial, Karoon Energy, Lynas Rare Earths, Northern Star Resources, Sandfire Resources and Syrah Resources. Macquarie Group will host its annual general meeting, starting at 10.30am at its new headquarters in Sydney. RBA governor Michele Bullock will speak about – The RBA's Dual Mandate - Inflation and Employment – at the Anika Foundation in Sydney at 1.05pm. There will be a raft of manufacturing and services PMI reports released in Japan, France, Germany, the UK, the EU and the US. European Central Bank policymakers gather and are expected to vote to keep rates steady. President Christine Lagarde will host a news conference after the meeting concludes. Top stories PM lifts US beef ban, paves way for Trump tariff talks | The move removes the key excuse used by the White House to impose heavy tariffs on Australian exports, setting the scene for fresh trade negotiations. | In an unusual appearance, former prime minister Scott Morrison told a US House committee that China aimed to use its economic power to challenge the world order. | The probe into alleged bond market manipulation has dragged on for 18 months, and been a source of heightened tension between the bank and the regulator. | The investment banking group was at serious risk of a first strike against its pay report. So CEO Shemara Wikramanayake hit the phones in a move that's surprised investors.


Perth Now
an hour ago
- Perth Now
Ex-PM Morrison urges strong US alliances over China
US alliances and partnerships must be strengthened to push back against Chinese economic coercion, former Australian prime minister Scott Morrison has told a US congressional panel. "This is as true in the economic sphere as it is in the security sphere," Morrison said in a rare appearance by a country's former leader before Congress. He shared with the House Select Committee on China his experience of coping with the country's trade punishments - including restrictions on imports of Australian wine, barley and more - when his government called for an independent inquiry into the origin of COVID-19. Morrison, who was prime minister from 2018 to 2022, said US allies and partners can be tapped to build an alternative supply chain of rare earths, used in technology such as smartphones. For such alliances and partnerships to work, "there has to be a strong core, and that requires a strong America," he said.