Reserve Bank of Australia Holds Rates Steady at 3.85%
The post Reserve Bank of Australia Holds Rates Steady at 3.85% appeared on BitcoinEthereumNews.com.
Key Points: RBA holds interest rates steady at 3.85%, against market expectations. Financial markets expected a 25 basis point reduction. Short-term impacts seen in AUD and cryptocurrency trading patterns. The Reserve Bank of Australia announced on July 8th that it would keep the benchmark interest rate unchanged at 3.85%, despite market predictions for a potential 25 basis point cut. The unexpected decision by the Reserve Bank of Australia (RBA) to maintain its interest rate impacts financial markets and may influence future economic policies. RBA’s Rate Decision Defies Expectations Governor Michele Bullock confirmed the decision to hold the interest rate at 3.85% to assess upcoming inflation data thoroughly. Despite expectations for a rate cut, this strategic choice underscores caution in current economic conditions. Although three board members advocated for a change, the majority opted for stability. Financial experts note that this move can potentially lead to changes in bond yields and AUD FX rates, holding implications for risk assets such as equities and cryptocurrencies. Michele Bullock, Governor of the Reserve Bank of Australia, stated, “Provided we are still on top of inflation, which is what we intend to be, then, and we’re getting confirmation that we are, then, yes, there is an easing cycle coming… We just want to confirm with a full quarterly CPI that we’re still on track to deliver inflation continuing down to the middle of the band over time.” Responses from crypto communities are noted on primary forums like Reddit and Discord. Disappointment is evident among some participants regarding delays in the anticipated easing cycle but with no significant changes visible in DeFi activities, as confirmed by leading market analysts. Cryptocurrency Markets React to Rate News Did you know? In July 2025, a similar hold on rates spurred market caution ahead of critical inflation data, echoing today’s…
Filed under: News - @ July 8, 2025 10:29 am