AUD made a bounce. Overview for 08.02.2023
Australian dollar in the pair with its US counterpart started growing again. The current quote is 0.6967.
Yesterday the Reserve Bank of Australia decided to lift the interest rate by 25 base points, as expected. The rate thus has reached 3.35% a year. This is a third increase in the interest rate in a row.
The cycle of increases must carry on. The nearest RBA meeting is scheduled for March. This policy is necessary to fight inflation.
The Australian regulator expects the CPI this year to drop because of global factors and a slow-down in the domestic demand. In 2023, inflation is expected to reach 4.75%, and by mid 2025 - 3.00%. The GDP will be growing slower, by 1.5% in 2023 and 2024. The labour market assessments are also cautious: it looks deficient. The growth of wages thus speeds up.
Aussie took the decision to lift the interest rate positively. Strong USD somewhat affect the AUD but for now the market somehow copes with it.
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