RATE RISE: RBA lifts interest rates to 4 pc


The Reserve Bank of Australia has decided to raise the official cash rate by 25 basis points to 4 percent

RATE RISE: RBA lifts interest rates to 4 pc
<font color=red>RATE RISE:</font> RBA lifts interest rates to 4 percent
March 2, 2010

The Reserve Bank of Australia (RBA) has decided to raise the official cash rate by 25 basis points to 4 percent, withdrawing the freeze from last month.

Following today’s Board meeting, RBA Governor Glenn Stevens issued a statement saying the move is a further step in bringing the country’s rates closer to "average".

"With the risk of serious economic contraction in Australia having passed, the Board moved late last year to lessen the degree of monetary stimulus that had been put in place when the outlook appeared to be much weaker," Stevens says.

"Lenders generally raised rates a little more than the cash rate and most loan rates rose by close to a percentage point. Interest rates to most borrowers nonetheless remain lower than average," he says.

"The Board judges that with growth likely to be close to trend and inflation close to target over the coming year, it is appropriate for interest rates to be closer to average. Today’s decision is a further step in that process."


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