The Reserve Bank sets the target ‘cash rate’, which is the market interest rate on overnight funds. RBA uses this as the instrument for monetary policy and influences the cash rate through its financial market operations. Decisions regarding the cash rate target are made by the Reserve Bank Board and explained in a media release on Tuesday, 3 February 2015 announcing the decision at 2.30 pm after the Board meeting.
Glenn Stevens, governor of RBA stated that the Board decided to lower the cash rate by 25 basis points to 2.25 per cent, effective Wednesday, 4 February 2015.
To know more about the RBA Interest rate decisions for 2015, please visit the Reserve Bank of Australia website.