The Australian Interest Rate Rises by 0.25%

Submitted by Craig Strzelecki on 7 May, 2006 - 23:40

And so on the 3rd of May 2006, 0930 hours, the Reserve Bank of Australia (RBA) announces the interest rate rise. You can read the monetary policy statement given by Ian Macfarane, the RBA Governor, on the reasons why the interest rate was raised here. The RBA had hiked up interest rates after 14 months of interest rates at 5.5% (since March 2005). The cash rate is now at a five year high. "Speculation as to whether or not the RBA would move was so evenly split that even the futures market had factored in a 50% probability in the morning leading up to the rate decision.