Interest Rate Update – March 2015

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.