RBA Interest Rate Decision Reveals No Rate Change in 2014
At its final meeting for 2014, the Reserve Bank of Australia announced that the official cash rate will again remain on hold at 2.5 per cent, marking a full calender year with no change. Interest rates have remained at a record low since the Board dropped rates 25 basis points from 2.75% to 2.5% in August 2013.
The decision to keep the cash rate on hold was widely anticipated by financial and property experts, and reiterates that its current settings were right for fostering sustainable growth.
However, governor Glenn Stevens warned that growth in both Europe and Japan was weak, and that key commodity prices had "declined significantly" due to a mismatch between supply and demand. This was the main deviation from last month's statement.
His comments came as speculation continued to mount about the possibility of a rate cut next year.
The RBA board will meet again in the new year, in February 2015.
Published: 2 December, 2014.