Australian Interest Rates Remain Unchanged

The Reserve Bank of Australia (RBA) has today announced that monetary policy will again remain “as is’ – leaving the official interest rate unchanged at 5.25%.

This means that interest rates have remained stable for a full 12 months, with the last change being increases of just 0.25% in both November and December 2003.

Even though the RBA gave no reason for its decision, it is most likely that declining exports, the softening in the domestic housing market and the rising value of the $A all contributed to the outcome.

The decision came as no surprise and was widely anticipated.

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David
editor@agarcarlyon.com