Interest Rates: Between Central Banks and Markets
Posted: Sat Aug 13, 2016 11:53 am
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.
Join the industry leaders at the Finance Magnates London Summit, 14-15 November, 2016. Register here!
It should be recalled that the RBA’s inflation target is 2%-3%. At the ... (read more)