{"id":60148,"date":"2025-08-10T23:13:06","date_gmt":"2025-08-10T23:13:06","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/60148\/"},"modified":"2025-08-10T23:13:06","modified_gmt":"2025-08-10T23:13:06","slug":"experts-convinced-rba-will-cut-interest-rates-despite-bank-shrugging-off-similar-peer-pressure-in-july-reserve-bank-of-australia","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/60148\/","title":{"rendered":"Experts convinced RBA will cut interest rates despite bank shrugging off similar peer pressure in July | Reserve Bank of Australia"},"content":{"rendered":"

Australians are spending more but buying less than in 2022, underlining the intense cost-of-living<\/a> pressures on households before Tuesday\u2019s Reserve Bank of Australia interest rate decision.<\/p>\n

Economists and financial markets are once again convinced the RBA board will cut the official cash rate from 3.85% to 3.6%, after the central bank stared down a similarly strong consensus and held rates steady at its previous meeting.<\/p>\n

Not all members of the rate-setting board were convinced of that decision at the time. Three of the nine voted in favour of a cut.<\/p>\n

The majority, however, did not see the need to rush rate cuts and wanted to see confirmation that inflation was tracking as expected through the three months to June.<\/p>\n

That confirmation duly came, with the latest quarterly consumer price report showing inflation sinking to as low as 2.1% \u2013 at the bottom of the bank\u2019s 2% to 3% target range \u2013 while the RBA officials\u2019 preferred underlying measure of price growth also fell, to 2.7%.<\/p>\n

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Andrew Hauser, the deputy governor, has since described the inflation figures as \u201cvery welcome\u201d.<\/p>\n

Given these developments, the chief economist of Deutsche Bank, Phil O\u2019Donaghoe, said he expected the monetary policy board\u2019s decision on Tuesday would be a unanimous vote in favour of a cut.<\/p>\n

If the RBA does cut rates for the third time this year, then homeowners with a variable mortgage should not be paying interest of more than 5.5%, said Sally Tindall, the data insights director at Canstar, an online comparison site.<\/p>\n

\u201cIn fact, if the majority of banks pass the cut on in full, which they should absolutely do, then there should be over 30 lenders offering at least one variable rate under 5.25%, while CBA and Westpac\u2019s lowest rates could hit 5.34%,\u201d Tindall said.<\/p>\n

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Chart showing real household consumption per capita. After a dip during the Covid years of 2020 to 2022, it has began to approach projections in 2023 but fell somewhat below projected growth across 2024-25.<\/a><\/p>\n

Total household consumption is 22% higher than three years earlier, based on Australian Bureau of Statistics figures. But prices have climbed by roughly the same amount over that period, even as the population has swelled<\/a>, and both have added to the total dollars being spent in the economy.<\/p>\n

After adjusting for inflation and putting it in per person terms, Australians, on average, are now buying 5% less than they were in early 2022, according to Challenger\u2019s chief economist, Jonathan Kearns.<\/p>\n

\u201cNo wonder the government is thinking about how to boost economic growth with its productivity summit<\/a> in a couple of weeks,\u201d Kearns said.<\/p>\n

There are worries the pandemic has left many households keener to save than spend, although data for the month of June showed shoppers were happy to take advantage of end-of-financial-year bargains.<\/p>\n","protected":false},"excerpt":{"rendered":"Australians are spending more but buying less than in 2022, underlining the intense cost-of-living pressures on households before…\n","protected":false},"author":2,"featured_media":60149,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46],"class_list":["post-60148","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/60148","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=60148"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/60148\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/60149"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=60148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=60148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=60148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}