<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Reserve Bank has revealed exactly </span><a href="https://www.9news.com.au/national/reserve-bank-of-australia-july-interest-rate-decision/6082c3d9-4eb8-4b91-98a4-6c0b6c574f69" rel="" target="_blank" title="why it kept interest rates on hold this month"><span>why it kept interest rates on hold this month</span></a><span>, but has offered an uncharacteristic silver lining to mortgage holders who are desperate for relief.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Today, the RBA released the minutes from its July meeting in which Governor Michele Bullock and her monetary policy board decided to keep the </span><a href="https://www.9news.com.au/interest-rates" rel="" target="" title="cash rate"><span>cash rate</span></a><span> on hold at 3.85 per cent, a move that shocked economists.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>However, those minutes included an admission that a rate cut was all but certain later in the year – a rare step from a central bank that has been at pains to avoid providing anything that could be considered forward guidance to markets and borrowers.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/major-bank-reveals-the-time-of-day-youre-most-likely-to-be-scammed/f6cce10f-8add-4ab7-998b-48128da9be75"><strong><span>Major bank reveals the time of day you're most likely to be scammed</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"All members agreed that, based on the information currently available, the outlook was for underlying inflation to decline further in year-ended terms, warranting some additional reduction in interest rates over time," the minutes state.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That's a stark contrast to Bullock's approach of steadfastly refusing to foreshadow what the RBA might do in future meetings, in an attempt to avoid predecessor Philip Lowe's infamous mistake of suggesting in late 2020 and early 2021 that the cash rate would remain low until 2024, only for a string of 13 hikes to begin in May 2022.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>An </span><a href="https://www.9news.com.au/finance/unemployment-rate-june-2025-abs-data-interest-rates/26716d34-ab4d-4bfb-accf-d21bb375235b" rel="" target="" title="unexpected rise in unemployment last week"><span>unexpected rise in unemployment last week</span></a><span> – the first of the year – led economists to pencil in a rate cut next month as a nigh-on certainty, unless quarterly inflation comes in higher than expected next week.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/finance/reserve-bank-reasons-hold-interest-rates-july-meeting-minutes/46c99c85-a17f-4598-a022-f1a637838457" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Today's minutes also revealed exactly why six of the monetary policy board's nine members voted to hold interest rates.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Uncertainty around the May monthly CPI data played a role, with the RBA concerned inflation was actually higher than what the official figure suggested, as did the pause in trade tensions surrounding US President Donald Trump's tariffs.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The reduced likelihood of the most severe scenarios materialising for the world economy meant that more weight could be placed on the baseline forecasts, and less on the downside scenario, than had been warranted in May when assessing the medium-term outlook," the minutes state.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/four-day-work-week-improves-worker-happiness-confidence-study-finds/7695eef3-c897-4264-868a-2aab865eafa3"><strong><span>The eight-hour change making workers happier, healthier, better</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Members noted that the baseline forecasts already incorporated some deterioration in global economic conditions because of higher tariffs and policy uncertainty...</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"These developments supported the view that the board could wait a little longer for further confirmation of the economy's trajectory before adjusting policy again."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>They also stated the board decided to </span><a href="https://www.9news.com.au/national/reserve-bank-interest-rate-decision-votes-released/e46423d1-e6f9-44de-b4e7-d11deaace2ba" rel="" target="" title="publish the unattributed votes of all members"><span>publish the unattributed votes of all members</span></a><span> in order to improve the bank's communication with the public.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span></span><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f" target="_blank"><strong><em><span>DOWNLOAD THE 9NEWS APP</span></em></strong></a><strong><em><span>:</span></em></strong><span> 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