The Reserve Bank shocked many mortgage borrowers, markets and economists by keeping the cash rate on hold at 3.85 per cent.
AMP's Deputy Chief Economist Diana Mousina says she believes the decision made by the RBA board was "not the right decision".
She says it seems as though the Reserve Bank does not trust the monthly inflation indicator, and is alive to concern that inflation may rebound.
Ms Mousina says she was surprised when the decision was made, as in her opinion, the run of data over the past month has signalled the need for lower interest rates and rate relief from the monthly inflation figures.
#ABCBusiness
Subscribe: http://ab.co/1svxLVE
Read more here: https://www.abc.net.au/news/2025-07-08/reserve-bank-cash-rate-on-hold-3-85-shock-july/105507308
ABC NEWS provides around the clock coverage of news events as they break in Australia and abroad. It's news when you want it, from Australia's most trusted news organisation.
For more from ABC NEWS, click here: https://ab.co/2kxYCZY
Watch more ABC NEWS content ad-free on ABC iview: https://ab.co/2OB7Mk1
Go deeper on our ABC NEWS In-depth channel: https://ab.co/2lNeBn2
Like ABC NEWS on Facebook: http://facebook.com/abcnews.au
Follow ABC NEWS on Instagram: http://instagram.com/abcnews_au
Follow ABC NEWS on X (Twitter): http://twitter.com/abcnews
Note: In most cases, our captions are auto-generated.
#ABCNEWS #ABCNEWSAustralia
--
Support podtube.me continuity as a free service. Become a Patreon or make an one-time donation
--
Video at Youtube: https://www.youtube.com/watch?v=eUwWnCFnxu4