Interest Rates: Between Central Banks and Markets

[kreslik.news]

This article was written by Michael Oyebamiji, an FX analyst with major focus on G-10 currencies.

A couple of days ago, the Reserve Bank of Australia cut interest rates to a record low of 1.50%, which was more than the 60% priced in by the market. According to the RBA, the low interest rate is an important factor which can be used to drive economic growth, enhance demand and eventually achieve some level of inflation.

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It should be recalled that the RBA’s inflation target is 2%-3%. At the ... (read more)