While Australia’s inflation has remained within target for two consecutive quarters, risks persist due to elevated unit labor costs and weak productivity, which could push inflation above forecasts, Reserve Bank Governor Michele Bullock said in a press briefing after an interest rate decision today. She stressed the need for more data - including June quarter CPI, labor market updates, and global developments - before taking further action. The board was united in direction but split on timing, with six members voting to hold and three favoring a rate cut, citing softer data and global risks. Bullock said fears of a severe global downturn tied to trade tensions have eased, but the international backdrop remains fragile, especially after fresh tariff escalations between the U.S. and China. Still, she emphasized that Australia’s closer ties to China offer some insulation from U.S.-led shocks. The RBA remains cautious, committed to its inflation and employment goals amid global uncertainty.