Australia Hiked Rates By 25 Bps After Pause

Meanwhile, the European Central Bank (ECB) also expects to raise interest rates as inflation reaches 7% in the Euro Area. While the ECB was set to deliver a 25 bps rate increase in May, the bank may increase the rate by another 50 bps to control inflation and bring it to the 2% target.

advertisement

Australia Looks for More Rate Hike to Control Inflation

The Board of the Reserve Bank of Australia on May 2 meeting decided to raise interest rates by 25 bps to 3.85%. The central bank also raised the rate paid on Exchange Settlement balances by 25 bps to 3.75%.

The hawkish stance caused the Australian dollar to rise while bond futures tumbled traders expect more pressure after Governor Philip Lowe revealed further tightening to being back inflation under the target range.

“Inflation in Australia has passed its peak, but at 7% is still too high and it will be some time yet before it is back in the target range. Given the importance of returning inflation to target within a reasonable timeframe, the Board judged that a further increase in interest rates was warranted today.”

Trending Stories
memecoins
Missed Pepecoin Rally? Top 3 Memecoins That May Give 10x Returns
24/7 Cryptocurrency News
Ethereum Price
Ethereum Price Poised for 17.5% Fall If Buyers Lose this Key Support
24/7 Cryptocurrency News
Dogecoin
Dogecoin Price Prediction: Bullish Setup Prepares DOGE Price for 32% Rally; Buy Today?
24/7 Cryptocurrency News
Cryptocurrencies
Top 3 Cryptocurrencies Set to Kickstart Bullish Recovery in May 2023; Entry Today?
24/7 Cryptocurrency News
Ethereum Price
Ethereum Price Prediction: Bearish Pattern Signals ETH Price Crash To $1500; Sell Or Hold?
24/7 Cryptocurrency News

The Australian labor market remained tight, with employment blowing past expectations in March and the unemployment rate at its lowest point in nearly half a century.

Meanwhile, the Consumer Price Inflation rate in the Euro Area slightly increased to 7% in April from a 13-month low of 6.9% in March. The ECB will likely increase interest rates by 25 bps this week to control inflation near the 2% target.

The global crypto and stock markets remain under pressure as the US Fed also decides its key rate hike on May 3 amid the banking crisis and the debt ceiling crisis. Traders await Fed Chair Jerome Powell’s stance for guidance on the rates in the coming months.

Also Read: Bitcoin Price Breaks Key Level, Risks Falling To $26K Ahead US Fed Rate Hike?

Crypto Market Remains Subdued

The crypto market remains subdued with low trading volumes across all major cryptocurrencies. Bitcoin price currently trades at $28,087, down 2% in the last 24 hours.

Whereas, Ethereum price trades near the $1,800 level. The crypto market continues to be under pressure amid major events this week.

Also Read: Litecoin Creator Predicts Massive Post-Halving LTC Price Rally

Comments

Post a Comment

Popular posts from this blog

Bitcoin mining industry mostly uninterested in spam controversy

While many Bitcoin users have been engaged in a social media flamewar over the use of individual node-level “spam” filters for most of the year, those involved in the bitcoin (BTC) mining industry have mostly stayed in their lanes, unbothered and flourishing. The Bitcoin block size war involved a number of miners who were very willing to share their opinions on the correct way to scale the network going forward. However, that was a different time. Even with the first Bitcoin Improvement Proposal (BIP) now written for a potential soft fork related to the “spam” controversy, most individual miners and mining pools are more worried about their own business operations and focused on their specialized roles in the wider ecosystem. In the past, coordination with miners had been an integral part of the soft fork process, as the miners were intended to update first to make sure everything went smoothly. While this aspect of the soft fork updating process was politicized during...
Read more

Fed To Join Payments ‘Revolution,’ Bring Crypto In ‘From the Fringes,’ Governor Waller Says

Image
The US Federal Reserve is preparing to join the “revolution in payments” and bring crypto “from the fringes” of finance into the mainstream. That’s according to Governor Christopher Waller, who said at the Fed’s Payments Innovation Conference in Washington on Oct. 21 that the central bank will grant stablecoin issuers and fintech firms access to its payment system through proposed “skinny” master accounts. The move underscores a dramatic shift in the Fed’s approach to digital assets and decentralized finance. Waller said technologies like stablecoins, tokenized assets, and AI are “no longer on the fringes but increasingly woven into the fabric of the payment and financial systems.” “Payments innovation moves fast, and the Federal Reserve needs to keep up,” he said. “We intend to be an active part of that revolution.” Fed Intends To Be Part Of The “Technology-Driven” Revolution In Pa...
Read more