Third 25-Basis Point Hike This Quarter in Australian Cash Rate
December 1, 2009
The Reserve Bank of Australia Policy Board raised the cash rate to 3.75% from 3.5%. A solid majority of analysts were expecting this outcome but with less confidence than a week ago. A statement from the central bank said their November quarterly policy statement’s conclusions and recommendation of a gradual lessening of stimulus remain intact. Household wealth has recovered “noticeably.” Credit for housing is “expanding at a solid pace.” Core inflation is expected to moderate less than expected six months ago. “Growth next year “is likely to be close to trend and inflation close to target.” The next policy meeting will not be held until early February, but it will take a significant departure from these conclusions to persuade analysts that a fourth small rate hike will not be implemented then.
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Tags: Aussie Dollar/Kiwi