What was the cash rate in early 2005?

In early 2005, the cash rate in Australia was indeed 5.25%. This interest rate is critical as it plays a significant role in the monetary policy framework of the Reserve Bank of Australia (RBA). The cash rate influences borrowing costs, spending patterns, and ultimately, inflation and economic growth.

During this period, the RBA was focused on managing inflation and ensuring the economy continued to grow steadily after previously experiencing a period of robust growth. The decision to maintain the cash rate at 5.25% was aimed at balancing these economic factors, as any increase or decrease would have significant implications for consumers and businesses regarding lending and spending.

Understanding historical cash rates helps in analyzing monetary policy trends and their impacts on the economy, providing insight into the broader economic context of that time.