Australian Dollar Needs RBA’s Help

The Australian dollar finished the previous week off strongly against its US counterpart sitting at a 2 year high US8055c, which is making the RBA sit up and take notice, and if the currency goes much higher they may have no choice but to act.

In their latest interest rate decision on Tuesday, the RBA kept rates on hold at 1.5 percent which had been widely anticipated by the market so all ears were on the following statement from RBA governor Philip Lowe.

“The recent data have been consistent with the bank’s expectation that growth in the Australian economy will gradually pick up over the coming year,” Mr Lowe noted in his following monetary speech.

It seems as if the central bank governor is deluding himself because if we look at the statistics, inflation in Australia is currently running at 1.8 percent which is below the central bank’s target rate and a mile away from the upper level of the target inflation level of 3 percent.

…more on finance.yahoo.com

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