entral bank to keep its monetary policy unchanged; however it is expected to be a close call and some analysts look for another 25 basis points rate hike. to 4.10%, a decision that once again came as a surprise, as the consensus was for no change. The central bank then said that the decision took place even as inflation has passed its peak but is still too high, and it will take time before it is back in the target range.
Even in the case of a hawkish surprise, the move could end up being negative for the Aussie if market participants become concerned about the economy, like what happened with the pound after the Bank of England's 50 basis points rate hike. The dynamics of the AUD/USD are more likely to be driven by the US Dollar and risk sentiment, as well as commodity prices that have offered signs of bottoming. A rebound would be positive; however, with central banks around the world still raising rates, a recovery seems vulnerable.Information on these pages contains forward-looking statements that involve risks and uncertainties.
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Source: FXStreetNews - 🏆 14. / 72 Read more »