RBA Hikes to 3.5 Percent

The Australian Central Bank hiked interest rates on the Australian Dollar(AUD) by 25 basis points from 3.25 percent to 3.5 percent.

The central bank cited continued return to growth for the Australian economy and moderated inflation. The recent huge gains in the AUD were noted and credited for a further fight against pricing pressures. There was a subtle tone that implied that rate hikes might be over for the year which restrained the AUD from gaining further on the rate hike.

Regardless of what the future holds in terms of rates the Australian economy seems to be holding it’s own. Not only that, they have hiked twice in one of the worst economic years in recent memory.

After some normalizing, the Australian Dollar will likely be a good bet against a wide range of countries.