Today, Reserve Bank of Australia put forward its quarter economic policy statement. The bank has anticipated that the economy will show better performance than the expectation so they hiked up their financial improved trend forecast. They are planning to increase the interest rates in the near future.
The RBA expecting that the economic growth will move ahead with the pace of 1.75 in this year as compared to the last forecast of 0.5%.
The growth pace is expected to pick up the pace of 2.25% in 2010 mid and will reach to 3.25% until the end of 2010. Regarding the GDP growth pace in 2011, the bank is expecting to grow with the 3.25% and is a good move in Forex trade.
The RBA is expecting to have the increasing business investments and continued improvements in the exports that depend on the mounting demand of natural resources.
Let‘s see the response of RBA on inflation rate, they said that the inflation will touch 3.25% level in 2009 before slowing down to 2.5% in 2010 mid and then reach to 2.25 at the end of this year. RBA added further that the benchmark range of the inflation rate will sustain all through the 2012. The bank will keep the inflation rate in between 2% and 3%.
The bank decided to decrease the financial stimulus plans gradually in the time that indicates added increment in the interest rates as well as the improvements in the Forex trading activities. RBA organized planning enabled them to avoid the technical recession in the trading by sustaining the interest rates at 0.4% in the Q1 then positive GDP improved by 0.6% in the Q2.
The Governor of RBA Glenn Stevens decided to place the interest rate at 3.50% in this month after the decision of keeping the rate at 3.00% the ever-lowest level.
However, the AUD traded well against other major currencies and its counterparts after the RBA‘s economic statement release. It has 0.9116 against USD after touching the heights of 0.9128 and trade at 1.6298 against EUR and around 82.61 against JPY.
The article gives news about the RBA‘s economic statement release and its impact on Forex trading and other economic activities of the market.