RBA Interest Rate Decision

The interest rate, also known as the key rate, is the primary indicator of the cost of credit resources in the economy.

It is the rate at which commercial banks can borrow from each other or from the central bank. Typically, this refers to short-term, overnight loans.

The central bank rate directly affects all interest rates in the economy, including lending and deposit rates. By adjusting the rate, the central bank can shift monetary policy toward easing or tightening, depending on its objectives.

Changes in central bank policy, in turn, affect employment, gross domestic product (GDP), inflation, and many other macroeconomic indicators.

Therefore, if the financial regulator lowers the key rate, monetary policy is eased. Cheaper credit resources can help the economy recover from a recession by restoring business activity, reducing unemployment, and increasing GDP growth rates.

However, if price growth threatens the stability of the financial system, the central bank will tighten monetary policy. Raising interest rates makes credit less accessible, slowing economic growth, reducing business activity, and putting pressure on inflation.

Elena Berseneva 28 June 2022 891
Elena Berseneva 28 June 2022 Fundamental analysis 891

Does the Trading Signal Work Based on the Forecast Value?

Fundamental analysis
In this article, we will talk about the economic calendar and determine what is better to rely on when making a decision to open deals: forecasts or previous values of indicators.
Elena Berseneva 28 June 2022 960
Elena Berseneva 28 June 2022 Fundamental analysis 960

How Does the Market React to Revised Values in the Calendar?

Fundamental analysis
Today we will study the reaction of the foreign exchange market to the publication of revised values of economic indicators. And let's see if it's worth relying on them when making a decision to enter the market.
Elena Berseneva 10 June 2022 878
Elena Berseneva 10 June 2022 Fundamental analysis 878

Is Trading on Rollbacks Effective? Part 2. Australia

Fundamental analysis
In the presented article, we will continue the study of trading on rollbacks on publications of economic indicators. And in the second part of the study, we will consider the events of Australia.