The Reserve Bank of Australia's latest hike of 25 basis points to its Official Cash Rate takes the interest rate differential between the trans-Tasman nations to its widest gap in Australia’s favour at 175 basis points.
The last time we were on even ground with Australia's OCR was back in March 2009 with a cash rate of 3.00%. Since then our cash rate has dropped 50 basis points to 2.50% and has remained at this rate for the past 12-months, were as Australia's has jumped five times totalling 125 points to 4.25%.
