Why does the RBA change interest rates by 0.25%?
Hi Clearly interest rates are very topical at the moment so I hope you might be able to shed some insight on something that has me curious. With very few exceptions, changes to interest rates by the RBA and other central banks always seem to be 0.25% up or down each time. Is there a particular reason why they are always 0.25%? Wouldn't making changes of something like 0.1% each time (or multiples of it) allow the RBA etc to "fine tune" their responses to whatever economic circumstances they are dealing with at the time? Cheers