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Is Reserve Bank Of Australia Too Optimistic On Growth?
As expected, the Reserve Bank of Australia kept its benchmark interest rate unchanged at 1.50%. But the Australian dollar rose nonetheless after the rate decision, up 0.6% for the day against the U.S. dollar, because Governor Philip Lowe took an optimistic tone on Australia’s economic growth. In other words, the RBA will not need to cut rates any time soon and the Australian dollar will be firm? In a statement, Governor Lowe said: Conditions in the global economy have continued to improve over recent months… The Australian economy is continuing its transition following the end of the mining investment boom, ... (full story)