Australia's central bank raises interest rate cut
Bank July 19th, 2010
Australia’s central bank unexpectedly raised the policy to stop its benchmark interest rate for the governor Glenn Stevens select priority acceleration of economic growth and delaying efforts to contain inflation.
In a statement today, Australia’s central bank (Reserve Bank of Australia / RBA) maintained the target lending rate one night (overnight) at position 3.75% after three months of the previous three times increased.
The decision was different from the projection of 20 economists surveyed by Bloomberg News, in which the survey estimated that the central bank raised interest rates 0.25 points. Futures contracts show 74% increase in opportunities.
Australian dollar fell to a low position for 6 months and increasing the value of Asian stocks down after this announcement due to fears the economy will not be able to overcome borrowing costs surge.
The report today showed business index fell to a low position for 6 months. Last week, Woolworths Ltd, the largest retailer in the country, reminding increasing interest rates would hit consumers.
“This adjustment process has ended quickly and interest rates rise. Message from the Australian central bank is not out of trouble, despite expectations improved,” said Matthew Johnson, Interest-rate Strategist UBS AG
