MNI BRIEF: RBA Board Votes 6-3 To Leave Rate At 3.85%

The Reserve Bank of Australia’s monetary policy board decided on Tuesday to leave the cash rate unchanged at 3.85%, citing the need for more data to confirm inflation is falling sustainably toward the 2.5% midpoint. 

The decision, which passed on a 6-3 vote, defied market expectations, which had fully priced in a 25 basis point cut. (See MNI RBA WATCH: Further Easing Likely As Domestic Factors Weigh)

“The Board judged that it could wait for a little more information to confirm that inflation remains on track to reach 2.5% on a sustainable basis,” the board said in its statement. “It noted that monetary policy is well placed to respond decisively to international developments if they were to have material implications for activity and inflation in Australia.”

Governor Michele Bullock will address the media at 3:30pm AEST.