GBPAUD

British pound / Australian dollar

On Tuesday, the Reserve Bank of Australia (RBA) will raise interest rates by half a percentage point. The rate hike will come as part of the most aggressive tightening cycle since the 1990s to curb inflation, according to a Reuters poll.

The Bank of England is buying bonds to stabilize financial markets. Subsequently, the pound sterling rose in volatile trading.

A sharp increase in the interest rate slowed down a bit the growth of inflation in Australia.

The Bank of England intends to suppress the storm in Britain's bond markets, noting it would buy back a national debt needed to revive the economy after new British Prime Minister Liz Truss' tax cut reforms. These measures provoked turmoil in the country's market.

August marked the eighth consecutive month of rising retail sales in Australia, indicating that the country's households are coping well with rapidly raising interest rates to fight rising inflation.