muso wrote on Nov 2
nd, 2010 at 2:43pm:
Quote:HOMEOWNERS to pay more on their mortgages after the Reserve Bank hikes its rate to 4.75 per cent.
The market had priced in a 26 per cent chance of a rate hike to 4.75 per cent from 4.5 per cent today.
At last. Now we might see some progress.
In what respect?
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Australia Raises Interest Rate to 4.75%, Ending 5-Month Pause
Nov. 2 (Bloomberg) -- The Reserve Bank of Australia unexpectedly increased its benchmark interest rate
on concern stronger growth will cause inflation to accelerate, driving the nation’s currency to parity with the U.S. dollar.
The decision, predicted by seven of 24 economists surveyed by Bloomberg News, was the second straight in which Stevens defied the majority of economists’ forecasts.
Link -
http://noir.bloomberg.com/apps/news?pid=20601087&sid=aa9VvaVXKGf4&pos=1================
So, the RBA was concerned that Growth would accelerate inflation and drive the OZ$ towards parity with the US$? That's the RBA concern?
Well, guess what the immediate reaction was -
http://chart.finance.yahoo.com/zs=AUDUSD%3dX&t=1d&q=l&l=on&z=l&p=s&a=v&p=s&lang=en-AU®ion=AU
Almost instant Parity, and all that without having to wait for their concerns to turn into stronger growth or for inflation to accelerate!
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RBA Raises Cash rate to 4.75% (Read 1464 times)
