Breaking news: The RBA raises the OCR by 25 basis points to 0.35 percent, sending the AUD/USD soaring beyond 0.7100.

At the May 3rd monetary policy meeting, the Reserve Bank of Australia (RBA) decided to increase the official cash rate (OCR) from a record low

May 03, 2022 - 01:30 PM 275 views

Breaking news: The RBA raises the OCR by 25 basis points to 0.35 percent, sending the AUD/USD soaring beyond 0.7100.

Market News

© Breaking news: The RBA raises the OCR by 25 basis points to 0.35 percent, sending the AUD/USD soaring beyond 0.7100.

Free Enquiry Now

At the May 3rd monetary policy meeting, the Reserve Bank of Australia (RBA) decided to increase the official cash rate (OCR) from a record low of 0.10% to 0.35% and to a record high of 25 basis points (bps).

        The RBA’s decision has surprised the trade markets, and they were lifted off and            hiked to 15 basis points (bps).

       At its April meeting, the central bank ditched its "patient" position on inflation,    signaling a clear step toward a hawkish swing.

The Market Reaction

As an immediate reaction to the RBA’s decision, the AUD/USD currency pair was switched off at 50 pips.

At the last time, the pair was seen trading at 0.7133, which was up by 1.23% in a day.

       About the RBA Rate Decision

The Reserve Bank of Australia (RBA) announces its interest rate decision. It is beneficial, or bullish, for the AUD if the RBA is hawkish about the economy's inflationary prospects and raises interest rates. Similarly, if the RBA has a dovish view of the Australian economy and maintains or lowers the interest rate, it is considered negative or bearish.

Share With -

 

No comments yet for this post

Please Login to comment this article.

If not a registered user yet, Please signup here