Australian major bank doesn’t intend to follow global rate lifts

Australian major bank doesn’t intend to follow global rate lifts

The recent outbreak of pure hawkishness by western policymakers doesn’t suggest that interest rates should be lifted in Australia, as Australia’s key banker told on Friday.

This month Canada's major financial institution dared to raise interest rates to 0.75% percent, while in the USA the Fed has lifted rates up to four times for the last two years. In the EU policymakers have also become less dovish.

It led some market participants to open long positions in the Australian dollar expecting the Reserve Bank of Australia to follow its global peers.

This week the Australian dollar edged up to a two-year high of $0.7992. Last it was worth $0.7934.

RBA Deputy Governor Guy Debelle stressed that considering that Australia’s policy rate didn’t require declining to the extremely low levels observed in other parts of the world, lifting policy rates by other key banks doesn’t mean that the Australian one should be lifted.   

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