While the overall market expected rate hike by 25 basis points, some disagreed. Decision to hold rates at 4.5% threw the Australian dollar below 0.97 and the assumption of parity, which many in the market had hoped in the near term, at least for now postponed. The statement said that if the economy will develop in line with expectations, that "at some point in time may require higher interest rates." This should serve as a minimum deterrent to falling Aussie after the meeting.
Translate this page
