Australia has just raised interest rates to 4.85%, the highest since November 2008 ⚡
On November 3, the Reserve Bank of Australia (RBA) raised rates by 25 basis points, from 4.60% to 4.85%. The figure was in line with market expectations.
The figure came as no surprise, but 4.85% is an 18-year high. A major central bank is still opting to tighten, showing that the fight against inflation is not over. The Fed also just raised rates on September 16, for the first time since 2023.
For financial markets, the Australian dollar is often supported when interest rate differentials widen, while bond yields can remain elevated. Since the move was already priced in, the reaction may be fairly muted.
For crypto, another central bank raising rates means global liquidity is unlikely to loosen. $BTC often comes under pressure when cheap money dries up. The next thing to watch is whether the ECB or BOJ will follow suit.
How long do you think this wave of rate hikes will continue?
#RBA #InterestRates #Australia
On November 3, the Reserve Bank of Australia (RBA) raised rates by 25 basis points, from 4.60% to 4.85%. The figure was in line with market expectations.
The figure came as no surprise, but 4.85% is an 18-year high. A major central bank is still opting to tighten, showing that the fight against inflation is not over. The Fed also just raised rates on September 16, for the first time since 2023.
For financial markets, the Australian dollar is often supported when interest rate differentials widen, while bond yields can remain elevated. Since the move was already priced in, the reaction may be fairly muted.
For crypto, another central bank raising rates means global liquidity is unlikely to loosen. $BTC often comes under pressure when cheap money dries up. The next thing to watch is whether the ECB or BOJ will follow suit.
How long do you think this wave of rate hikes will continue?
#RBA #InterestRates #Australia
