Interest Rates On Hold for March

Mar 3, 2009 Interest Rates by Administrator

interestrate Today the Reserve Bank of Australia (RBA) decided to leave rates unchanged at 3.25%.

While there was debate amongst economist about March interest rate cuts, it seems that the RBA have left rates on hold to see how their aggressive rate reductions over the last 6 months and the Government stimulus package affects the economy.

Glenn Stevens the RBA governor said that demand in Australia has not weakened as much in other countries. He also commented that mortgage rates and business loan rates are at low levels by historical standards. As for future rate cuts he did say that they “will consider their position again at its next meeting.

It seems the flow on effect of world economic events have not passed onto Australia. The RBA are taking a wait and see approach to assess how our domestic economy is affected by overseas events in the months to come.