BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -When the Reserve Bank lowers the cash rate, this causes other interest rates in the economy to fall. Lower interest rates stimulate spending. Businesses respond to this by increasing how much they produce, leading to an increase in economic activity and employment.

Detailed explanation-2: -So, if the RBA increases the official cash rate, you will likely pay more for your mortgage each month. However, if you’re still paying off a fixed rate portion of your mortgage, your repayments won’t be affected since you locked in your rate.

Detailed explanation-3: -At its February meeting, the RBA decided to further lift the cash rate by 25 basis points to 3.35%. Rate increases are a reflection of economic conditions. Central banks raise and lower interest rates to stimulate economic growth and manage inflation. If inflation is high, they might raise rates to try to control it.

Detailed explanation-4: -The RBA and the cash rate Every month (except January) the RBA board reviews the current cash rate, assesses the state of the economy, then decides if it will either hold, increase or decrease the cash rate.