RBA raises OCR rate by 25 basis points to 3.60%
Reserve Bank of Australia (RBA) board members raised interest rates for the tenth consecutive time today, raising the official exchange rate (OCR) by another 25 basis points from 3.35% to 3.60%, as expected.
Economists polled by Reuters said the RBA will announce a fifth consecutive quarter-point rate hike on Tuesday, followed by another hike in the next quarter, after which it will be suspended until next year.
The reaction of the AUD/USD pair
Reacting to the RBA’s decision, AUD/USD fell nearly 30 pips to 0.6700. At the time of writing, AUD/USD is down 0.06% on the day to trade at 0.6720.
AUD/USD 15 minute chart
About the RBA rate decision
If the Reserve Bank of Australia is hawkish about the inflationary outlook for the economy and raises interest rates, it is positive or bullish on the Australian dollar (AUD). Similarly, if the RBA is dovish on the Australian economy and keeps the interest rate or lowers the interest rate, this is considered negative or bearish for the AUD/USD pair.
From the FXStreet team
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