RBA opts to keep interest rates the same
The Reserve Bank of Australia (RBA) has unsurprisingly opted not to lower interest rates this month.
Economists were widely anticipating the RBA to keep the cash rate at 4.25 per cent when the board met on Tuesday (March 6th).
Governor of the institution Glenn Stevens suggested that the RBA felt the global economy is growing at a below-trend pace, although the board also believe a sharp downturn is unlikely.
The RBA lowered national rates in both November and December and many experts felt that another cut was due in February, but this was not forthcoming.
As a result, many banks have since moved to raise the interest rates attached to their home loans, but have not been so fast to do likewise for packages such as term deposits and savings accounts. This has understandably angered many Aussies.
However, Mr Stevens played down the significance of the increases in his latest statement.
"Interest rates for borrowers have generally risen slightly since the Board's previous meeting, but remain close to their medium-term average," he commented.
Get more information on the latest Reserve Bank interest rates with Mozo.