Australia's central bank keeps rates at 3.85%, stuns markets
SYDNEY, July 8 (Reuters) - Australia's central bank on Tuesday left its cash rate steady at 3.85%, a shock for markets that had confidently wagered on a cut, saying the majority of the board wanted to wait for more information to confirm inflation was slowing.
Wrapping up a two-day policy meeting, the Reserve Bank of Australia said six members had voted to hold rates steady while three voted against, a rare split decision for the board.
Markets had been almost fully priced for an easing to 3.60% this week given core inflation had slowed to the mid-point of the RBA's 2% to 3% target range and consumer spending was proving weaker than expected. Uncertainty caused by U.S. tariffs also argued for a cut as insurance against a global slowdown. AU/INT
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