Interest Rate Update – March 2016

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.