The Reserve Bank of Australia will be meeting to announce their next interest rate decision on Tuesday.
There have been rumours recently that the RBA will at some stage cut the interest rate to help the Australian export market.
The problem that the RBA faces is that the housing market down under was up 4.9% quarter on quarter and with house prices spiralling out of control an interest rate cut could make things even worse.
However, owing to the ongoing global slowdown and the problems facing China as shown with Black Monday only a month ago and commodity prices at a 16 year low things are not looking good in Australia.
The recent change of leadership from Tony Abbot to Malcolm Turnbull saw a brief respite for the Australian Dollar vs Sterling but to me it was only short term.
Although I don’t think we’ll see any change to monetary policy this month I do think that the comments will open up the door for a future interest rate cut for Australia which is likely to see the Australian Dollar weaken against Sterling.
If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]