Group 1 - The Reserve Bank of Australia (RBA) unexpectedly kept the interest rate at 3.85%, indicating a wait-and-see approach due to global uncertainties from U.S. tariff plans [1][3] - Economists debated the potential for further easing, with expectations of two more rate cuts this year, bringing the cash rate to 3.35% before a prolonged pause [1][3] - Following the RBA's decision, the Australian dollar surged, and the three-year government bond yield rose by 5 basis points to 3.42% [1] Group 2 - The RBA stated it could wait for more information to confirm inflation is on a sustainable path to 2.5%, and that monetary policy is positioned to respond decisively to international dynamics affecting the economy [3] - Since the RBA's last meeting, monthly inflation in Australia has slowed to near the bottom of the 2-3% range, with weak household spending and prevailing pessimism in consumer confidence surveys [3] - The uncertainty from U.S. trade policies, particularly President Trump's tariff threats, has heightened the RBA's cautious stance [3][4] Group 3 - Australia's exposure to U.S. tariffs is relatively low at 10%, but the country has been affected by industry-specific tariffs on steel and aluminum [4] - According to the Australian Productivity Commission, proposed U.S. tariff adjustments could have a small positive impact on the local economy, potentially increasing actual GDP by 0.37% [4] - However, growing economic uncertainty is expected to slow global economic activity, household consumption, and business investment, particularly affecting irreversible investment decisions by businesses [4]