RBA Holds Fire as Bullock Seeks Clearer Data on 2.5% Inflation Goal

The Reserve Bank of Australia left its benchmark interest rate unchanged at its July meeting, saying it needs more evidence that inflation is moving sustainably toward its 2.5% target before taking further action. Governor Michele Bullock told reporters the board is committed to an easing cycle but considers the timing uncertain. She noted that monthly consumer-price data are too volatile and warned that some second-quarter CPI components could exceed forecasts, potentially lifting the trimmed-mean measure above the bank’s current 0.6% quarterly projection. Bullock added that the 50 basis points of rate cuts delivered earlier this year have not yet fully filtered through the economy, reinforcing the case for patience. The board will review the next quarterly inflation print ahead of its 5 August meeting to determine whether additional reductions in borrowing costs are warranted.