Has a non-US rate rise ever been so closely watched? On October 6, the Reserve Bank of Australia raised the interest rate by 25 basis points to 3.25%, thus becoming the first developed nation to start tightening monetary policy since the global financial crisis. In some measure it signals a formal end to the crisis.
The move didn’t go down universally well. Ben Potter, research analyst at IG Markets in Melbourne, calls it “both extraordinary and unnecessary”.
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