Interest Rate Update – March 2015

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Cash Rate – No change

The Reserve Bank of Australia (RBA) has announced it will maintain the official cash rate at 2.25%.

Following last month’s RBA decision to reduce the cash rate by 0.25% for the first time since August 2013, the RBA decided to defer any action so as to better understand the effects of the decrease before it again reduces the cash rate in another month or two . The RBA is hoping last month’s drop was a clear message to Australian businesses that it is time to improve their appetite for risk and invest more in new staff and equipment.

Interest Rate Update – March 2016

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The Reserve Bank of Australia (RBA) has just announced it will maintain the official cash rate at 2.00%.

It may be Super Tuesday in the United States but it is also a huge week for local financial data, including the GDP figures for our last quarter. The Bank will prefer to assess this information to see just how the domestic economy is performing in the early stages of this year.  Whilst the market is currently forecasting a 60% chance of an interest rate reduction by May we remain confident the RBA will leave the cash rate untouched for the remainder of 2016.