Live: ASX to slip after RBA's surprise interest rate decision, Trump announces further tariffs | Breaking News & Latest Australia Updates

Live: ASX to slip after RBA's surprise interest rate decision, Trump announces further tariffs — live Topic:Financial Markets The Australian share market is likely to fall slightly in morning trade after yesterday's surprise decision by the Reserv...

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Topic:Financial Markets

The Australian share market is likely to fall slightly in morning trade after yesterday's surprise decision by the Reserve Bank to keep interest rates on hold.

Meanwhile, Wall Street traders were on edge after Donald Trump gave mixed signals about whether he would allow extensions to his new August 1 tariff deadline. The US president also announced steep tariffs on pharmaceuticals and copper imports.

See how the trading day unfolds on our blog.

Disclaimer: this blog is not intended as investment advice.

By David Chau

The Reserve Bank disappointed mortgage borrowers and shocked market economists by keeping interest rates on hold in July.

But it's worth remembering that just a couple of weeks ago, the general expectation was that we'd need to wait until August for the next rate cut.

That all changed when the ABS released its monthly Consumer Price Index (CPI) Indicator from May on June 25, which showed headline inflation at 2.1 per cent over the past year and the RBA's preferred, more stable trimmed mean measure at 2.4 per cent.

That's below the mid-point of the RBA's 2-3 per cent target band, hence why most of us who try to follow the central bank's thinking thought it would cut sooner rather than later.

The only problem? The Reserve Bank doesn't trust the monthly ABS numbers.

For more, here's the latest analysis from the ABC's business editorMichael Janda:

By David Chau

Here's more information on those new tariffs Donald Trump announced overnight.

Mr Trump has flagged a possible 200% tariff on pharmaceuticals — one of Australia's biggest exports to the US — but says manufacturers will be given time to move to America to dodge the tax.

The US president also said copper was likely to be hit with a 50% tariff.

To date, pharmaceuticals and copper have both been exempt from the US's ever-evolving tariffs regime, pending two separate investigations by the Department of Commerce.

But Mr Trump has long railed against American dependence on foreign producers of the products, given the lifesaving nature of many imported medicines and copper's importance to the industrial sector and technological innovation.

Here's the full story byBrad Ryan:

By David Chau

Good morning, and welcome to the ABC's finance blog! I'll be your guide for the next few hours.

The Australian share market is on track to have a relatively quiet start, following yesterday's surprise decision by the Reserve Bank to leave interest rates on hold.

ASX futures are pointing to a tiny fall of just 0.1% this morning.

The RBA's decision to keep the cash rate unchanged at 3.85% blindsided households, financial markets, most economists and me (your humble scribe).

We all thought a rate cut on Tuesday was guaranteed, particularly since inflation has fallen quickly and is now firmly within the RBA's target range!

But the highly paid economists from the major banks the Commonwealth Bank, Westpac, NAB and ANZ were blindsided as well, so we're in good company.

The Australian dollar is the main beneficiary of rates remaining higher for a bit longer, having risen 0.6% to 65.3 US cents.

Meanwhile, investors on Wall Street are on edge (and somewhat confused) over the latest trade war announcements from Donald Trump.

Earlier this week, the US President pushed the tariff deadline to August 1 (from July 9). He later said the deadline was "not 100% firm".

But overnight, he posted on Truth Social there would be no change or extensions granted, and that August 1 was the absolute final deadline.

Not only that, Mr Trump announced a steep 50% tariff on copper imports (which will affect BHP's and Rio Tinto's shipments from their Escondida mine in Chile).

He also flagged a 200% tariff on pharmaceutical products brought into the United States.

Anyway, buckle in. We'll have a lot more updates throughout the day!

By David Chau

Prices current around 7:20am AEST

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