No change in interest?

The Domestic Bank dealers Bill (DBB) swap rate on the 3rd of April 2009 was:
90 day – 3.14%
180 day – 3.07%

The domestic bond rates:
5 year – 4.06%
10 year - 4.425%

The Bank Bill (BB) swap rate:
30 day – 3.25%
60 day – 3.22%
90 day – 3.19%
120 day – 3.16%
150 day – 3.14%
180 day – 3.12%

Bank Bills
1 year - 2.945%
3 years – 3.92%
5 years – 4.42%

The Official Cash Rate (OCR) is 3.25%, currently the 30 day BB rate is 3.25% as well. The 90 day DBB is 3.14% lower than the OCR, this could indicate the market expects the Official Cash Rate (OCR) to fall.

In Brisbane on the 31st of March 2009, Ric Battellino Deputy Governor of the Australian Reserve Bank (RBA), made an address to the Urban Development Institute of Australia National Congress 2009. In the published speech he gave to the Institute, he stated:

“……the monetary policy transmission mechanism in many countries has become severely impaired, which is why some central banks have resorted to non-traditional monetary measures.
This problem has not arisen in Australia. The monetary policy transmission process has been effective and there remains scope to ease policy further if circumstances require.”

“….These measures will go a long way to offsetting the negative influences on the economy coming from abroad, but the reality is that we cannot fully insulate ourselves from what is happening elsewhere in the world. As such, GDP is likely to fall in 2009.

Even so, Australia will remain one of the better performing economies in the developed world and be well placed to benefit from the renewed global expansion when it comes.”

With these words from the RBA Deputy Governor and the 180 day DBB rate at 3.07%; lower than the OCR. The Australian Federal Reserve Bank will not lower the OCR, as the previous lower has been effective so far.