Nov 14, 2024 (The Australian - ABIX via COMTEX) --
The Australian dollar's fall below $US0.65 is a clear message from global markets that interest rate cuts will not be tolerated while the nation's governments boost the ever-growing public service while failing to address the issue of declining productivity. Australia currently has both a higher inflation rate and higher interest rates than the US. There are fears that the policies of president-elect Donald Trump will be inflationary, and Federal Reserve chairman Jerome Powell has indicated that rates will not fall if inflation rises. If Trump's policies prevent US interest rates from falling, the Reserve Bank will not have the option of reducing its cash rate sufficiently to relieve mortgage stress without putting further downward pressure on the Australian dollar, and thus increasing the inflation rate..
Publication Date: 15 November 2024
UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT
UNITED STATES. FEDERAL RESERVE BOARD
RESERVE BANK OF AUSTRALIA
COMTEX_459815329/2229/2024-11-14T18:13:19
By Robert Gottliebsen
Copyright 2024 Roy Morgan Research. All Rights Reserved.
