Today, the Reserve Bank of Australia has left the key interest rate unchanged at 3%. This decision appears t have matched analytic forecasts.
According to the resent survey conducted by Bloomberg, only 2 out of 29 respondents said that the key interest rate might be cut. However, this is not the case.
For reference sake, in May-December 2012, the RBA cut the key interest rate by 1.25%. This decision was made in order to support the weakening Australian economy. January and February was more productive for Australia. Therefore, the RBA saw no reason to continue cutting the rate.
As of the Australian stock index - S&P/ASX 200 – it has already gained 9.3% this year. The chart below, courtesy of , reflects the current state of affairs in the market of S&P/ASX 200:
