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Monetary policy

Yesterday

President Donald Trump speaks during a lunch with African leaders in the State Dining Room of the White House, Wednesday, July 9, 2025, in Washington. (AP Photo/Evan Vucci)

US inflation rises to highest level since February

Consumer prices picked up for June, in line with economists’ expectations and likely marking the start of an increase in prices related to Donald Trump’s tariffs.

This Month

 President Trump’s views are explicit. He says Powell “should lower the rate by a lot,” that “Powell’s termination cannot come fast enough!” and promises to appoint “somebody that wants to cut rates.”

Why the Fed’s independence is worth fighting for

We should be both alert to and alarmed by political attacks on central banks and their implementation of monetary policy.

Commonwealth Bank along with its smaller rivals is active in the market ahead of interest rate calls, hoping to offset some of the pain from a cut.

Big bank trading distortion leads to overpowered rate cut hopes

Major lenders are active in the market, hoping to protect themselves from short-term losses that arise from lower interest rates. Hedge funds sense opportunity.

Why the bond market got the RBA decision so wrong

Although the monetary policy board’s decision was a surprise and admittedly contestable, it is also defensible.

RBA board members Jenny Wilkinson and Iain Ross.

Which RBA board members voted for a rate cut?

At least two Labor appointees to the Reserve Bank monetary policy board almost certainly voted for a cut on Tuesday, former insiders believe.

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Reserve Bank of Australia governor Michele Bullock after the RBA board decided to keep rates on hold.

Economists feel the burn of the RBA rate cut that wasn’t

Economics teams at some of the country’s most prominent financial institutions found themselves wrong-footed on Tuesday when the central bank decided to hold rates.

There was no rate cut from the RBA today.

6 reasons the RBA’s interest rate hold will go down in history

Governor Michele Bullock took the rare step of thumbing her nose at almost every market economist and trader by holding rates steady.

Reserve Bank governor Michele Bullock considered a 0.5 per cent rate cut.

Divided RBA shocks markets to hold cash rate at 3.85pc

The Reserve Bank wants to “wait for a little more information to confirm that inflation remains on track to reach 2.5 per cent on a sustainable basis”.

Traders and economists broadly agree, the Reserve Bank of Australia will be cutting interest rates on Tuesday.

Markets widely expect an RBA rate cut, except these 5 economists

Traders and economists broadly agree that the central bank will deliver a third reduction for the year. Some want it to wait for the outlook to become clearer.

Several rate cuts on the way after RBA meets this week

Economists have joined the market in tipping another rate cut on Tuesday, as the latest quarterly survey reveals that borrowing costs have much more to fall this year.

Reserve Bank of Australia governor Michele Bullock has switched from reluctant to willing cutter.

Will the real Reserve Bank governor please stand up

The RBA will almost certainly cut interest rates on Tuesday. But we don’t know which version of Michele Bullock will appear to explain the decision.

June

Global uncertainty has given way to a sea of green on the ASX, with the market closing in on its best financial year in five.

ASX eyes the best return since COVID-19 as momentum trade kicks in

The market is on track for gains of around 10 per cent this financial year, defying broadly held expectations that uncertainty would lead to sustained selling.

For the RBA, however, the issue is that any productivity initiatives are likely ‘slow-burn’ and any near-term improvement appears unlikely.

Why Australia’s productivity ‘wart’ may limit interest rate cuts

In the longer term it is difficult to square sluggish productivity growth against inflation remaining close to the middle of the RBA 2-3 per cent target range.

Strategists are concerned US President Donald Trump could lose patience on trade negotiations.

Markets asleep at the wheel as tariff D-Day looms

The Australian dollar and equities could tumble should the White House wrong foot markets by raising duties significantly on July 9, strategists warn.

Jerome Powell, chairman of the US Federal Reserve,

Powell tells legislators he is in no rush to cut rates

There is no rush to lower rates as officials wait for more clarity on the economic impact of higher tariffs, says the US Federal Reserve chairman.

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Donald Trump is casting a big shadow over Jerome Powell’s final year as Fed chair.

Trump’s next fight is the one that could really shake markets

The battle over who should be the next US Federal Reserve chairman is part of a problem that just won’t go away: the American debt crisis.

Reserve Bank governor Michele Bullock.

Oil shock could put RBA in a bind on rate cuts

Amid rising global tensions and higher oil prices, the Reserve Bank faces a delicate balancing act as it weighs interest rate cuts against creeping inflation.

US Federal Reserve chairman Jerome Powell expects inflation to hit consumers.

RBA, Fed in no rush to cut interest rates, economists warn

Traders are betting big on US reductions despite the Federal Reserve hinting at higher inflation ahead. A solid jobs report has cast doubt in Australia.

US Federal Reserve chairman Jerome Powell at a news conference after the rate decision.

Fed cuts outlook for US economy but holds rates

The Federal Reserve sees inflation worsening this year and officials are increasingly split about the direction of further rate cuts.

The escalating conflict between Iran and Israel has sparked a rally in the US dollar.

US dollar back as a safe haven? Not so fast

The greenback’s sudden resurgence may be more about oil prices and shifting global money than investors seeking safety from the escalating Middle East conflict.

Original URL: https://www.afr.com/topic/monetary-policy-5zu