ISCOVER
For the first time, the central bank has published how the Monetary Policy Board voted on the cash rate decision and revealed what split the board.
The Reserve Bank of Australia (RBA) has published how the members of the Monetary Policy Board voted for the July 2025 rate decision, in a move to improve transparency.
In the first such move – made for the July rate decision on Tuesday (8 July) – the board revealed that the decision to hold the cash rate at 3.85 per cent was made by the majority – six in favour, three against.
In the post-meeting press conference on Tuesday afternoon, RBA governor Michele Bullock revealed that the split demonstrated "really good, active debate in the boardroom about holding and easing".
She revealed that the main differences splitting the two camps was that those who wanted to cut read the data "slightly softer" than those who wished to hold, and had "a little bit more concern about the downside risks, particularly on the international side".
"The difference was not about direction... it was more about timing," she added.
The call to publish how the board votes was first recommended in the wide-ranging review into the Reserve Bank (RBA) from 2023, which put forward 51 recommendations to shake up how the central bank operates.
While the majority of the recommendations have already been implemented (including introducing two boards; reducing cash rate decisions from 11 times a year to eight; holding cash rate meetings over two days, rather than one; and holding a press conference after each cash rate decision), one of the main outstanding recommendations was to report the “unattributed votes” in the public statement for the cash rate decision.
It recommended that this would involve publishing the number of members who voted in favour of the decision, voted for an alternative, and abstained.
The review made the recommendation after noting that central banks in other countries (including the Bank of England, the US Federal Reserve, and the Bank of Japan) do so.
This had reportedly been shown to provide useful information about future monetary policy. In particular, it is believed that voting transparency helps financial markets update their expectations about future policy.
Moreover, the review stated that the minutes that are released following the meeting should describe the areas of disagreement.
The minutes for the July meeting are not expected to be released until 22 July.
The review stated: “[Publishing unattributed votes] gives a sense of where the debate lies on the board and how close the decision was.
“A close call when rates are changed signals that the bank is closer to the end than the beginning of the cycle, which is useful information.
“The publication of unattributed votes balances the benefits of increased information and transparency while managing the risks of hindering open discussion at the Monetary Policy Board.
“The review does not support publishing attributed votes or attributing views in the Minutes to specific board members given the risk that this could stifle open and frank discussions, and open members up to lobbying.”
In the post-meeting statement by the RBA for July, the board highlighted the surprisingly tight labour market and decreased trade uncertainty as arguments to keep the cash rate on hold.
“The board continues to judge that the risks to inflation have become more balanced and the labour market remains strong. Nevertheless, it remains cautious about the outlook, particularly given the heightened level of uncertainty about both aggregate demand and supply,” it said.
“The board judged that it could wait for a little more information to confirm that inflation remains on track to reach 2.5 per cent on a sustainable basis. 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.
“The board will be attentive to the data and the evolving assessment of risks to guide its decisions. In doing so, it will pay close attention to developments in the global economy and financial markets, trends in domestic demand, and the outlook for inflation and the labour market. The Board is focused on its mandate to deliver price stability and full employment and will do what it considers necessary to achieve that outcome.”
The move to publish votes has been long-awaited. During the press conference following the May 2025 rate decision, RBA governor Michele Bullock revealed that the Monetary Policy Board has been discussing this over the last few meetings.
According to Bullock, the Monetary Policy Board had discussed releasing the votes and this was sitting with the Treasurer (as doing so relied on an agreement between the board and the Treasurer).
Reserve Bank board members
Currently, the Monetary Policy Board are:
- Bullock, chair and governor
- Andrew Hauser, deputy chair and deputy governor
- Marnie Baker AM, non-executive member
- Renée Fry-McKibbin, non-executive member
- Ian Harper AO, non-executive member
- Carolyn Hewson AO, non-executive member
- Iain Ross AO, non-executive member
- Alison Watkins AM, non-executive member
- Jenny Wilkinson PSM, ex-officio member (secretary to the Australian Treasury)
The next cash rate decision will take place on 11–12 August, with the decision being handed down at 2:30pm on 12 August.
[Related: RBA surprises with cash rate decision]
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