Although a large increase was expected the rate of the Astralian dollar halted at 0.88. Though this can be thought of as a bad thing the treasurer welcomed it saying "Families will welcome this decision and businesses will welcome this decision,". This happened because the RBA didn't do it's planning and that is what the Australian government wants becuse in the end they still believe the ratewill reach 4.75% by the end of the year. I think that the interest rate of the Australian dollar will excede 4.75% by the end of the year.
Key Terms
- RBA: Reserve Bank of Australia
- interest rate: rate of the money that is paid for a financial service (loan, etc.)
- monetary policy: policy of a country or central bank in regards to money, amount of involvement which a government has on the market activity by influencing the level of export
http://news.bbc.co.uk/2/hi/business/8492636.stm
Who is this? :)
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