The Reserve Bank of Australia decided to once again reduce the official cash rate, this time to 1% in a concentrated effort to boost household spending and the economy in general.
With the uncertainty of the federal election behind it, the RBA has decided to reduce the official cash rate to a record low of 1.25% as it tries to stimulate household spending and the economy. This is the first rate move since August 2016.
In the lead up to the federal election the RBA has again decided to leave the official cash rate unchanged at 1.5%.
Only twice before has the RBA elected to drop rates during an election campaign and on both those occasions the incumbent governing party lost the election.
The RBA has decided to leave the official cash rate unchanged at 1.5%.
With speculation mounting that a date for the federal election is close to being announced and that tonight’s federal budget will bring with it tax cuts, the Reserve Bank has again left rates on hold.
Today the RBA has once again left interest rates on hold.
Following its February meeting, the RBA said the case for the next rate move to be a decrease was now almost equal to the case for an increase and that it would continue to watch the economy closely for signs around its key objectives of decreasing unemployment and increasing inflation.