The Reserve Bank of Australia (RBA) Tuesday cut its interest rate to a new record low of 2.25%, down from 2.50%. The RBA said that the Aussie remains overvalued, despite the recent decline.
Falling commodity prices and a slowdown of the Chinese economy weigh on the Australia's economy. China is Australia's biggest trading partner.
The Bank of Canada (BoC) lowered its interest decision last month, cutting its interest rate to 0.75% from 1.0%. That was the first interest rate reduction since April 2009. The BoC's interest rate had been at 1.0% since September 2010.
Canada's economy was hit by a decline in oil prices. Crude oil prices dropped more than 55% since last June. That was a reason to cut interest rates.
It's expected that both, the RBA and BoC, could cut their interest rate again in their next monetary policy meeting.
The next central bank that might cut its interest rate could be the Reserve Bank of New Zealand (RBNZ), despite Wednesday's comments by Governor Graeme Wheeler that interest rates will remain on hold "for some time".
Falling commodity prices and a slowdown of the Chinese economy also weigh on the New Zealand's economy. China is New Zealand's second biggest trading partner.
If there are no changes, so we might see an interest rate cut in the next RBNZ monetary policy meeting on March 12.
© 2000-2022. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at email@example.com.