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November 6, 2007
We lower rates, other countries like Australia are raising rates. Where would you put your excess cash?
Australia hikes interest rates 0.25 points
By V. Phani Kumar
Last Update: 8:01 PM ET Nov 6, 2007
HONG KONG (MarketWatch) -- Australia raised its key interest rates by a quarter percentage point Wednesday, its second hike in 2007, to contain inflation. The Reserve Bank of Australia's cash rate target stands at 6.75% following the increase. In a statement, RBA Governor Glenn Stevens wrote that "by the March quarter of next year, both headline and underlying measures of inflation are likely to be above 3%" and that growth in aggregate demand will "need to moderate if inflation is to be kept to 2-3% in the medium term." The Australian dollar was little changed following the move, and was recently quoted at $0.9318 to a U.S. dollar and bought 106.91 yen.  |
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