At its meeting today the Reserve Bank of Australia (RBA) Board decided to lower the cash rate by 25 basis points to 7.0 per cent, effective 3 September. This is the first official rate cut in almost 7 years According to the RBA, inflation in Australia has been high over the past year in an environment of limited spare capacity and earlier strong growth in demand. In these circumstances, the Board has been seeking to restrain demand in order to reduce inflation over time.
It will be interesting to see what effect this has on the Aussie dollar?
looks like an initial spike up from 84.80 level it remains to be seen wether the Aussie will hold the upmove??????
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