The Reserve Bank of Australia has left interest rates on hold today at 4.25% for the third consecutive meeting. It was a decision that was widely predicted by economists with attention now being focused on the next rate update in April, which will come just a week before the government releases their budget.
Within the coming days we will be able to scope what the banks will do with their interest rates. I predict no surprises and presume banks will keep both variable home loan and savings account rates steady. The Reserve Bank said they are ready to cut interest rates if we have a bad March quarter with inflation figures at the next meeting.
The dollar rose after the announcement and with a bit of profit taking ended around the $1.04 level.
So, looks like your interest rates will stay steady on those savings accounts, but the coming days are more likely to be telling factors. Stay tuned!