RBA raises OCR rate by 25 basis points to 3.60%

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.

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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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The opinions expressed here are solely those of the author and do not necessarily reflect the views of Forex Quebec. Every investment and trading move involves risk, so you should do your own research when making a decision.

Disclaimer: The information and opinions contained in this report are for general information only and do not constitute an offer or solicitation to buy or sell foreign exchange contracts or CFDs. Although the information contained herein has been obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness and accepts no liability for any direct, indirect or consequential damages that may result from anyone relying to such information.

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