AUD Interest Rates Raised Again

AUD Interest rates were raised again this morning by the central bank by a quarter percentage point for an unprecedented third straight month as evidence mounts that the nation’s economy is strengthening. On an intra-day chart you can see in green the reaction to the announcement.

Today’s increase is the first time the central bank has raised borrowing costs at three straight meetings, boosting the rate from a half-century low of 3%. Everyone else has pretty much keep their rates low for now. But this may be a sign of things to come around here…just take a look at the USD/CAD’s reaction.