Aussie: neither up, nor down. Overview for 21.03.2023
The Australian dollar in pair with the US dollar on Tuesday is retreating. The current quote is 0.6686.
The minutes of the meeting of the Reserve Bank of Australia published today mention that the country’s monetary policy has got in some kind of a dead-end. The interest rate is currently quite restrained, while the economic prospects look vague.
In the nearest future, the increases in the interest rate are likely to make a pause. The big question is, whether the financial system is ready for such. In the RBA, they think that the pause will let them collect more data about the economic prospects. In the meantime, the main viewpoint does not change: to drop inflation, the regulator will have to lift the rate.
According to the valuations of the RBA, the latest reports on the GDP, employment, and inflation have turned out weaker than expected. At the meeting in April, the regulator will analyse the fresh statistics.
The decline in AUD is, indeed, provoked by the almost-made decision to make a pause in tightening the credit and monetary policy.
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