RBA keeps rates on hold

RBA keeps rates on hold

interest-rates-cut

The RBA has kept interest rates on hold at 3.00%

The Reserve Bank has kept interest rates on hold at its April board  meeting.

The RBA’s decision means the cash rate has remained at 3 per cent — a  historical low — since the last 25 basis points cut in December.

The decision matched financial markets’ expectations. The markets were  pricing in a 5 per cent chance of a fall in rates, and a 72 per cent chance that  a 25 basis points cut could take place this year.

A string of recent economic data pointing to improving consumer sentiment and  a lift in the housing market, as well as better-than-expected jobs data for  February, meant the Reserve Bank was unlikely to cut rates further today.

The easing cycle has seen the central bank take 175 basis points off the cash  rate since November 2011.

RBA interest rate decisions in current easing cycle

2012

  • Dec 5: -0.25, to 3 per cent
  • October 3: -0.25, to 3.25 per cent
  • June 6: -0.25, to 3.5 per cent
  • May 2: -0.50, to 3.75 per cent

2011

  • December 7: -0.25, to 4.25 per cent
  • November 2: -0.25, to 4.5 per cent

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