Australia's Central Bank Holds Rates at 3.85% Despite Cut Expectations

Australia's Central Bank Holds Rates at 3.85% Despite Cut Expectations
Above: Australian currency. Image copyright: Unsplash

The Spin

Pro-establishment narrative

The RBA’s decision shows prudent caution in uncertain times. With global trade tensions and Trump’s tariff threats creating economic volatility, rushing into rate cuts could be premature. Waiting for quarterly inflation data will provide the RBA with more concrete data on whether inflation is sustainably returning to target, allowing it to make an informed decision.

Establishment-critical narrative

This decision represents ideological rigidity over economic evidence. Inflation is back in the target band, the economy is struggling with weak growth, and households desperately need mortgage relief. Instead, the RBA is punishing families unnecessarily when the data already supports immediate rate cuts to support economic momentum.

Metaculus Prediction


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