Minutes of the Reserve Bank of Australia meeting show that a rate cut in July would contradict its "cautious" strategy.

Minutes from the Reserve Bank of Australia's meeting in July showed that the central bank believed that the third interest rate cut in four meetings was not in line with its "cautious, gradual" easing strategy. According to the minutes of the policy meeting held in Sydney on July 7th and 8th, the central bank "considered that with the degree of policy restraint lessening, a cautious approach to easing was prudent." Most board members felt that there were "more compelling reasons" to keep the cash rate at 3.85%. The discussions revealed that the board members unanimously believed that the monetary policy stance was still "moderately restrictive," and that it was "difficult to determine with precision how much further easing might be required before the policy was no longer restrictive." The focus of the minutes was on the board's deliberation process, as the decision to keep rates unchanged despite expectations of a rate cut surprised investors and led to criticism of the bank's communication strategy. After the meeting, Governor Michele Bullock faced tough questioning from reporters, with one journalist even questioning whether the decision was a "betrayal" of indebted households.