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RBA's rate announcement

Katarina Taurian
04 March 2014 — 1 minute read

The Reserve Bank of Australia has today announced the outcome of its second board meeting of the year.

The RBA has announced it will be keeping the cash rate on hold at 2.5 per cent, as predicted by Shane Oliver, head of investment strategy and chief economist at AMP Capital.

“The RBA has clearly indicated that with growth remaining low but with tentative signs of improvement in some indicators, a period of stability in interest rates is appropriate,” he said.


“Since not enough has really changed since the last meeting, this remains the case,” he added.

“Soft jobs news and the poor business investment outlook do suggest though that our expectation for rate hikes to commence later this year may be premature, with the risk being they won’t occur [until] next year.”

RP Data’s national research director Tim Lawless also predicted the cash rate would remain steady.

“From a housing market perspective the Reserve Bank would be viewing the strong market conditions as a positive scenario which has driven investment in dwelling construction which in turn provides a very healthy multiplier effect for the domestic economy,” he said.

As reported in SMSF Adviser’s sister publication Real Estate Business, a survey from finder.com.au showed 10 of Australia’s leading economists unanimously predicted no rate change.

RBA's rate announcement
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