Australia central bank wary of cutting rates too quickly, prudent to await more data
Minutes of its July 7-8 policy meeting showed the majority of the Reserve Bank of Australia's nine-member board judged rates at 3.85% were still modestly restrictive, but it was difficult to know how far they could be cut before becoming neutral.
"So members observed that it might be prudent to lower interest rates cautiously as the required degree of policy restrictiveness declines," the minutes showed.
The three members that argued for a rate cut judged there was already sufficient evidence that inflation was on track to be sustainably back to target, and there was less need to wait before eaing policy further.
The RBA surprised markets by holding interest rates steady at the meeting in a rare split of six to three, saying the majority of the board wanted to wait for more information including quarterly price data to confirm inflation was slowing.
Traders had wagered heavily on a cut after a monthly inflation report had shown the closely-watched trimmed mean measure hitting a 3-1/2 year low of 2.4% in May. The economy also barely grew in the first quarter as public demand sputtered.
In a nod to market pricing, the RBA said there had been instances in the past where markets had been very confident about the outcome of a policy meeting, but the central bank had acted a different other way.
The RBA said several data indicators had been in line with or even slightly stronger than forecasts, pointing to the benefit of waiting for a little longer.
It noted that even though economic growth was muted in the first quarter, a pick up in private demand was stronger than expected and the labour market had not eased as expected.
It noted monthly inflation could be volatile, and components like housing suggest June quarter inflation could be slightly stronger than expected.
On top of those reasons, the probability of the gloabl economy evolving in line with the most severe downside secario had declined, although the future state of U.S. trade and other policies was unpredictable.
Markets now imply around a 91% chance the RBA will ease again at its next meeting on August 12, after a surprisingly soft jobs report raised concerns that the resilient labour market was finally showing some cracks.
Futures see rates bottoming around 3.10% by early next year.
((yifan.qiu@thomsonreuters.com; +61 0 427901124;))
Keywords: AUSTRALIA RBA/MINUTES
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
FLAGSTAR FINANCIAL, INC. ANNOUNCES ACTIONS TO ENHANCE ITS CORPORATE STRUCTURE BY MERGING HOLDING COMPANY INTO THE BANK
HICKSVILLE, N.Y., July 24, 2025 /PRNewswire/ - Flagstar Financial, Inc. (NYSE: FLG) (the "Company") the holding company for Flagstar Bank, N.A., (the "Bank"), announced today that its Board of Directors has approved a merger agreement between the Company and the Bank whereby the Company will merge into the Bank, with the Bank as the surviving entity (the "Reorganization"). The resulting entity will continue to be known as Flagstar Bank, N.A. and its common stock will continue to trade on the New York Stock Exchange ("NYSE") under the same ticker symbol currently used by the Company – "FLG". The Reorganization will further reduce costs, simplify our organizational structure, streamline managerial, operational, and administrative functions throughout the Bank, eliminate redundant corporate activities and duplicative supervision and regulation. The Reorganization is subject to both regulatory and shareholder approval. The Company expects to file a proxy statement and other proxy materials with the Securities and Exchange Commission in connection with the Reorganization during the third quarter of 2025. Assuming receipt of required regulatory approvals and an affirmative vote by shareholders, the Company expects to consummate the Reorganization before year-end. Commenting on this action, Joseph M. Otting, Chairman, President, and CEO stated, "We continue to make significant progress on our journey of building a well-capitalized, diversified, and top-performing regional bank. This action of simplifying our legal, regulatory, and corporate structure accelerates this mission by reducing unnecessary costs and ensures our focus remains on the customers and communities we serve." Flagstar Financial, Financial Inc. is the parent company of Flagstar Bank, N.A., one of the largest regional banks in the country. The Company is headquartered in Hicksville, New York. At March 31, 2025, the Company had $97.6 billion of assets, $67.1 billion of loans, deposits of $73.9 billion, and total stockholders' equity of $8.2 billion. Flagstar Bank, N.A. operates approximately 400 locations across nine states, with strong footholds in the greater New York/New Jersey metropolitan region and in the upper Midwest, along with a significant presence in fast-growing markets in Florida and the West Coast. Cautionary Statements Regarding Forward-Looking LanguageThis press release and any associated conference call may include forward‐looking statements by the Company and our authorized officers pertaining to such matters as our goals, beliefs, intentions, and expectations regarding, among other things: (a) revenues, earnings, loan production, asset quality, liquidity position, capital levels, risk analysis, divestitures, acquisitions, and other material transactions, among other matters; (b) the future costs and benefits of the actions we may take; (c) our assessments of credit risk and probable losses on loans and associated allowances and reserves; (d) our assessments of interest rate and other market risks; (e) our ability to achieve profitability goals within projected timeframes and to execute on our strategic plan, including the sufficiency of our internal resources, procedures and systems; (f) our ability to attract, incentivize, and retain key personnel and the roles of key personnel; (g) our ability to achieve our financial and other strategic goals, including those related to the Reorganization, our merger with Flagstar Bancorp, Inc., which was completed in December 2022, our acquisition of substantial portions of the former Signature Bank through an FDIC-assisted transaction, which was completed in March 2023, and our ability to fully and timely implement and maintain the risk management programs institutions greater than $100 billion in assets must maintain for so long as we are subject to such requirements; (h) the impact of the $1.05 billion capital raise we completed in March 2024; (i) our previously disclosed material weaknesses in internal control over financial reporting; (j) the conversion or exchange of shares of the Company's preferred stock; (k) the payment of dividends on shares of the Company's capital stock, including adjustments to the amount of dividends payable on shares of the Company's preferred stock; (l) the availability of equity and dilution of existing equity holders associated with future equity awards and stock issuances; (m) the effects of the reverse stock split we effected in July 2024; (n) the impact of the recent sale of our mortgage servicing operations, third party mortgage loan origination business, and mortgage warehouse business; and (o) our ability to obtain shareholder and regulatory approval and effectively consummate the proposed Reorganization. Forward‐looking statements are typically identified by such words as "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "should," "confident," and other similar words and expressions, and are subject to numerous assumptions, risks, and uncertainties, which change over time. Additionally, forward‐looking statements speak only as of the date they are made; the Company does not assume any duty, and does not undertake, to update our forward‐looking statements. Furthermore, because forward‐looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in our statements, and our future performance could differ materially from our historical results. Our forward‐looking statements are subject to, among others, the following principal risks and uncertainties: general economic conditions and trends, either nationally or locally; conditions in the securities, credit and financial markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of our loan or investment portfolios, including associated allowances and reserves; changes in future allowance for credit losses, including changes required under relevant accounting and regulatory requirements; the ability to pay future dividends; changes in our capital management and balance sheet strategies and our ability to successfully implement such strategies; recent turnover in our Board of Directors and our executive management team; changes in our strategic plan, including changes in our internal resources, procedures and systems, and our ability to successfully implement such plan; our ability to successfully remediate our previously disclosed material weaknesses in internal control over financial reporting; changes in competitive pressures among financial institutions or from non‐financial institutions; changes in legislation, regulations, and policies; the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; the outcome of federal, state, and local elections and the resulting economic and other impact on the areas in which we conduct business; the imposition of restrictions on our operations by bank regulators; the outcome of pending or threatened litigation, or of investigations or any other matters before regulatory agencies, whether currently existing or commencing in the future; our ability to fully and timely implement and maintain the risk management programs institutions greater than $100 billion in assets must maintain for so long as we are subject to such requirements; the restructuring of our mortgage business; our ability to recognize anticipated cost savings and enhanced efficiencies with respect to our balance sheet and expense reduction strategies; the impact of failures or disruptions in or breaches of the Company's operational or security systems, data or infrastructure, or those of third parties, including as a result of cyberattacks or campaigns; the impact of natural disasters, extreme weather events, civil unrest, international military conflict, terrorism or other geopolitical events; and a variety of other matters which, by their nature, are subject to significant uncertainties and/or are beyond our control. Our forward-looking statements are also subject to the following principal risks and uncertainties with respect to our merger with Flagstar Bancorp, which was completed in December 2022, and our acquisition of substantial portions of the former Signature Bank through an FDIC-assisted transaction, which was completed in March 2023: the possibility that the anticipated benefits of the transactions will not be realized when expected or at all; the possibility of increased legal and compliance costs, including with respect to any litigation or regulatory actions related to the business practices of acquired companies or the combined business; diversion of management's attention from ongoing business operations and opportunities; the possibility that the Company may be unable to achieve expected synergies and operating efficiencies in or as a result of the transactions within the expected timeframes or at all; and revenues following the transactions may be lower than expected. In addition, our forward-looking statements are subject to the following principal risks and uncertainties, among others, with respect to the proposed holding company reorganization transaction: the potential timing or consummation of the proposed transaction and receipt of regulatory approvals or determinations, or the anticipated benefits thereof, including, without limitation, future financial and operating results; risks and uncertainties related to the ability to obtain shareholder and regulatory approvals or determinations, or the possibility that such approvals or determinations may be delayed; the imposition by regulators of conditions or requirements that are not favorable to us; our ability to achieve anticipated benefits from the consolidation and regulatory determinations; and legislative, regulatory and economic developments that may diminish or eliminate the anticipated benefits of the consolidation. More information regarding some of these factors is provided in the Risk Factors section of our Annual Report on Form 10‐K for the year ended December 31, 2024, and in other SEC reports we file. Our forward‐looking statements may also be subject to other risks and uncertainties, including those we may discuss in this news release, on our conference call, during investor presentations, or in our SEC filings, which are accessible on our website and at the SEC's website, Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments. Important Additional Information and Where to Find It Flagstar Financial, Inc. will file a proxy statement and other relevant documents concerning the proposed transaction with the Securities and Exchange Commission (SEC). INVESTORS ARE URGED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. You will be able to obtain the documents free of charge at the website maintained by the SEC at In addition, you may obtain documents filed with the SEC by the Company free of charge by contacting: Investor Relations, Flagstar Financial, Inc., 102 Duffy Avenue, Hicksville, NY 11801. Phone: (516) 683-4420 Participants in Proxy SolicitationFlagstar Financial, Inc. and its respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the Company's shareholders in connection with the proposed transaction. Information about the directors and executive officers of the Company and their ownership of Company stock is set forth in the proxy statement for the Company's 2025 Annual Meeting of Shareholders. Investors may obtain additional information regarding the interests of such participants by reading the proxy statement for the proposed transaction when it becomes available. Investor Contact:Salvatore J. DiMartino516-683-4286 Media Contact:Steven Bodakowski248-312-5872 View original content to download multimedia: SOURCE Flagstar Financial, Inc. Sign in to access your portfolio
Yahoo
3 hours ago
- Yahoo
Lammy and Healey to sign bilateral Aukus deal during trip to Australia
The UK will sign a new 50-year bilateral Aukus treaty with Australia as the Foreign and Defence Secretaries visit the country on Friday. David Lammy and John Healey will meet their counterparts at the annual Australia-UK ministerial meeting, or Aukmin, in Sydney, and then travel on to Melbourne to meet businesses involved in the Aukus submarine programme. They will also visit Darwin as the Carrier Strike Group docks in the Northern Territory. The Aukus partnership between the UK, US and Australia involves building nuclear-powered attack submarines – including Australia acquiring its first such fleet – and co-operating in other areas of defence. It was agreed by the three countries in 2021, but the Trump administration has put it under review, raising fears it could pull out. The deal now being signed by the UK and Australia sets out the bilateral aspects of the partnership and how the two countries will work together to deliver their Aukus submarine programmes over the next half century. Defence Secretary Mr Healey said: 'Aukus is one of Britain's most important defence partnerships, strengthening global security while driving growth at home. 'This historic treaty confirms our Aukus commitment for the next half century.' He said people 'not yet born' will benefit from jobs secured through the deal. More than 21,000 people in the UK are expected to be working on the programme at its peak. Foreign Secretary Mr Lammy said the UK-Australia relationship is 'like no other'. He added: 'In our increasingly volatile and dangerous world, our anchoring friendship has real impact in the protection of global peace and prosperity. 'Our new bilateral Aukus treaty is an embodiment of that – safeguarding a free and open Indo-Pacific whilst catalysing growth for both our countries.' The UK's Carrier Strike Group – an international formation of Royal Navy warships, submarines and aircraft – has been taking part in the Talisman Sabre military exercise hosted in Australia. The Australia and US-led military exercise involves more than 35,000 military personnel from 19 countries. Shadow defence secretary James Cartlidge said: 'Aukus was a landmark achievement of the last Conservative government and it's essential that Labour keeps up the momentum, including on industrial collaboration. 'We welcome further progress but this must deliver in practice, both in terms of jobs and strengthened mutual security, at a time of heightened threats.'
Yahoo
4 hours ago
- Yahoo
Motorola Solutions to Issue Second-Quarter 2025 Earnings Results on August 7
Webcast presentation by executives to follow earnings release CHICAGO, July 24, 2025--(BUSINESS WIRE)--Motorola Solutions, Inc. (NYSE: MSI) will issue its second-quarter 2025 earnings results after the close of the market on Thursday, August 7. Motorola Solutions will host its quarterly conference call with financial analysts at 4 p.m. Central (5 p.m. Eastern) on August 7. The conference call will be webcast live at About Motorola Solutions | Solving for safer Safety and security are at the heart of everything we do at Motorola Solutions. We build and connect technologies to help protect people, property and places. Our technologies support public safety agencies and enterprises alike, enabling the collaboration that's critical for safer communities, safer schools, safer hospitals and safer businesses. Learn more about our commitment to innovating for a safer future for us all at View source version on Contacts Media Contact Alexandra ReynoldsMotorola +1 312 965 3968 Investor Contact Tim YocumMotorola +1 847 576 6899 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
