Good afternoon. The Reserve Bank of Australia has held rates at 3.85%, in a surprise decision that denies further mortgage relief for millions of Australian households. The decision came as a shock to financial markets and a large majority of experts who were sure the RBA board would cut interest rates for a second straight meeting.
Explaining why the bank did not follow through with market expectations of a 0.25% cut, the RBA governor, Michele Bullock, said economic conditions “remain uncertain” and its board was waiting to confirm whether inflation was still on track to reach 2.5%. For the first time in the bank’s history, the monetary policy board’s votes on the cash rate decision were made public, which revealed three of the nine members voted to cut rates today.
The treasurer, Jim Chalmers, said the RBA decision was “not the result millions of Australians were hoping for or what the market was expecting”.
Top news
In video
What do tariffs, Australian mining, geopolitics and the trade war between China and the US have to do with tiny magnets made from rare earth minerals such as yttrium and scandium? Guardian Australia’s Matilda Boseley explains.
What they said …
“Even small gaps can be an escape route for a determined dog.” – Lara Shannon
The dog behaviourist and TV presenter has teamed up with the owners of world-famous formerly missing dachshund Valerie, who is now raising awareness for National Lost Pet Prevention Month. Valerie’s separation anxiety “played a big role in why she went missing”, Shannon said – but the elusive hound’s microchip records helped “confirm it was her” when she was found.
In numbers
The West Australian premier, Roger Cook, has encouraged his federal Labor counterparts to consider a gas reserve on the east coast as it mulls a regulatory overhaul to shore up supply and contain prices. Cook said WA’s gas reservation policy, which requires offshore producers set aside 15% of supplies for local users, has resulted in cheaper gas for households and business since it was introduced in 2006.
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Before bed read
We all became detectives in Erin Patterson’s trial – the true crime industry is making professional crime solvers of all of us. But crime writer Candice Fox can’t help but wonder – at what cost?
Daily word game
Today’s starter word is: SEY. You have five goes to get the longest word including the starter word. Play Wordiply.
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