• subs-bellGet the latest news! Subscribe to the ifa bulletin

RBA makes cash rate announcement

The Reserve Bank of Australia has decided to keep the cash rate unchanged at its monthly board meeting on interest rates.

 The RBA voted to keep the cash rate on hold at 2.25 per cent.

This move was anticipated by St George economist Janu Chan, who suggested the RBA was waiting to observe the effects of last month’s cut.

“We think that the RBA will still want to give the economy more support, but it will prefer to wait at this meeting so it can assess developments, particularly the currency and housing markets,” she said.

However, she predicted a rate cut in coming months “remained possible.”

Commsec economist Savanth Sebastian said last month’s cut was a “line-ball decision” but suggested the RBA may have been influenced by strong reporting results.

“Reporting season has been better-than-expected,” he said.


The Bank of Queensland's Peter Munckton described the decision to keep rates unchanged as a “tight call”.

“The RBA will almost certainly go again in the early months of 2015,” he said.

“Which month the RBA cut will come down to tactical factors, such as the value of the Australian dollar.”