21 Mar 2016

Reserve Bank investigates suggestion rate cut leaked

6:46 pm on 21 March 2016

The Reserve Bank is investigating a suggestion its surprise rate cut a week ago might have been leaked.

A former senior employee of the bank, Michael Reddell, said in a blog on the day of the decision he had been told an hour before it was released that the benchmark cash rate was to be cut.

Mr Reddell said at the time he didn't know whether it was a leak or inspired speculation.

Foreign exchange markets were calm ahead of the bank's announcement, supporting the view there was no knowledge or even widespread expectation of a rate cut.

A Reserve Bank spokesman said there was no evidence any information was leaked, but it took the integrity and security of market-sensitive information seriously and had hired an outside consultant to investigate.