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Interest Rate Announcement for March 2016

By Rebecca Zhang

The Reserve Bank has predictably decided to leave official interest rates steady at 2 per cent over March – now the 10th consecutive month with rates on hold at this level.

Low interest rates, however, continue to activate housing markets with Sydney and Melbourne starting the year off strongly following last year’s fade-outs. Other capital city markets generally are also performing solidly so far this year.

Official interest rates will remain in hold over March although the outlook remains fluid with a cut still on the cards, particularly given the prospect of a relatively tough upcoming federal budget and looming significant changes to national taxation policy.

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