Australian Dollar continues to slide following worse than expected GDP growth; RBA hints at rate-hike pause
From: MoneyTrading.com.au
Australia’s economy expanded at half the forecast pace in the third quarter and Reserve Bank hinted that it may pause in the pace of interest rate hikes.
Australian gross domestic product grew 0.2% in the three months ended Sept. 30, according to the Australian Bureau of Statistics. That’s below the 0.4% pace forecast by economists. A drop in net exports partly offset a 0.7% increase in household spending and a 6.2% gain in public investment, the figures showed.
Battellino said monetary policy is “back in the normal range” as business and home loan rates have increased at a faster clip than the RBA has hiked the overnight cash rate target. The comments prompted traders to cut bets on a fourth increase in the benchmark rate any time soon, after the central bank’s three increases in as many months. The Australian Dollar was traded just under 90 US cents.
Australia’s economy expanded at half the forecast pace in the third quarter and Reserve Bank hinted that it may pause in the pace of interest rate hikes.
Australian gross domestic product grew 0.2% in the three months ended Sept. 30, according to the Australian Bureau of Statistics. That’s below the 0.4% pace forecast by economists. A drop in net exports partly offset a 0.7% increase in household spending and a 6.2% gain in public investment, the figures showed.
Battellino said monetary policy is “back in the normal range” as business and home loan rates have increased at a faster clip than the RBA has hiked the overnight cash rate target. The comments prompted traders to cut bets on a fourth increase in the benchmark rate any time soon, after the central bank’s three increases in as many months. The Australian Dollar was traded just under 90 US cents.
posted by Money Trading at
2:47 PM
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