One who asks a question is a fool for five minutes; one who does not ask a question remains a fool forever.
Chinese Proverb

Forget your password?

Sign In

AskPips.com

Home > Economic Indicators > Resolved Question

Resolved Question

Show me another

Avatar
Boripat

The RBA's interest rate prediction?

According to what I read in the RBA's statement released on November 5th, the RBA will soon hike their interest rate. Will they really do it? for the third consecutive month? what do you think the market would react/reacted to the statement released yesterday? will it make the AUD increase in value even before the next interest rate decision?

thanks,
boripat

over 2 years ago

Report It

Best Answer - Chosen by Asker

Avatar
HappyPip

Well, the RBA has never had 3 consecutive months in rate hikes... Another thing worth noting is that, in their recent statement, they highlighted the importance of being careful and gradual when it comes to removing their easing policies. On top of that, they also mentioned that they think that the past two rate hikes are enough to ensure sustainable economic growth for the succeeding months. The odds seem to be against another rate hike next month but if the RBA decides to surprise the markets with one, then that'd be like pixie dust and happy thoughts for the AUD!

over 2 years ago

* You must be logged in to add comments. or Join Askpips.com.

Answers (1)

Avatar
ForexGump

The RBA could possibly raise its rates again given the strong performance of the country's industries, particularly its housing sector. The increase in house prices have been pushing inflation higher, putting the recent 1.0% which is a tad over the 0.9% consensus. Moreover, China is seen to grow even further. This will lead to an increase in Australia's exports of raw materials. Hence, a rate hike of perhaps another 0.25% is possible given these factors.

over 2 years ago

* You must be logged in to add comments. or Join Askpips.com.

Resolved Questions in Economic Indicators

Feedback Form