Federal Reserve’s US interest rate rise: Why does it matter for Australia?

10 January 2017 - Federal Reserve’s US interest rate rise: Why does it matter for Australia?

The US Federal Reserve has lifted interest rates from extremely low levels to still very low levels, so why the care factor, especially half a world away in Australia?   The reason to pay attention is that the US remains the foundation of the global economic system and the world’s key reserve currency. As such, even small changes in US financial conditions have a significant bearing on currencies, bonds, shares and other financial assets, as well as economies, around the planet. But is a 25-basis-point interest rate increase really that significant? No, especially since global financial markets had priced […]

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