Rate cuts unlikely as dollar rises
The average Aussie might not have much interest in the global currency markets, but it is worth keeping abreast of the latest developments as they can affect all of us.
This is especially the case for people who are looking to secure mortgages and personal loans.
According to the Wall Street Journal, the Aussie dollar rose to its highest level in a week yesterday (October 25th), as inflation data suggested that price pressures were lower than expected in the third quarter of 2012.
Without getting too bogged down in the technical side of things, what this does mean is the odds on the Reserve Bank of Australia (RBA) sanctioning another interest rate cut next month have lengthened.
This is a blow for loan customers, who would have been hoping for the national cash rate to fall further, following on from the RBA's 25-point readjustment at the start of October.
That said, none of the nation's major banks passed this cut on in its entirety, with most opting to trim the rates attached to their loan products by 0.20 per cent.
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